International mineral development a banker's view

CIM Bulletin, Vol. 79, No. 887, 1986

P.O. WATERS, Senior Vice-President, Bank of Montreal, Toronto, Ontario

Mineral deposits are where you find them; they have no allegiance to territorial boundaries. Over the past decade much of the new investment in mining has been outside of continental North America, let alone Canada. The larger Canadian Banks have pursued this offshore business through their multi-national organizations; this reflects both the increasingly international orientation of today's business environment, and to a degree, the competitive advantage of these offshore developments. The current oversupply situation in mineral markets and the increasing maturity of the Developed World Economy reduces the need for new mining projects relative to growth in GNP. Those that are brought on stream in the future due to their competitive advantage, will continue to be pursued by lenders and equity investors alike.

Keywords: Mineral economics, Mining industry, Mine financing. Less developed countries, Markets, International trade, Mineral development, Investments