The Role of Government in Financing Mineral Development

It is commonly accepted that govern ments have a role in the financing of mineral development. The reasons for government involve- ment are examined in general and in the light of the current situation in Aust- ralia, particularly having regard to the ownership of resources. A brief introduction is given to the new Australian Government bodies, the Petroleum and Minerals Authority and the Australian Industry Development Cor- poration, designed to fill a new role in mineral development, and to the basic changes brought about by the Australian Government's decision to become involved in the future development of the country's mineral resources. It is generally accepted that governments do have a role in financing mineral development. This acceptance does not seem to be confined to Aust- ralia alone but is more a worldwide phenomenon. Mineral development has traditionally been regarded as the pre- serve of private enterprise and there- fore is presumed-to be profitable, and so it is instructive to ask why there is this special role for governments.