Unprecedented political, economic, and social change throughout the
world will have an increasingly profound effect on the dynamics of the
world's mining industry. Analysis of the early financial trends in this
development (statistics on exploration expenditure, and investment flows)
gives some insight into the magnitude of structural change and its
implications for established mining economics and companies.
Increasing confidence in the stability of many third world and
developing countries is attracting exploration and investment capital that
had previously been largely directed to established mining economies in
North America, Australia, Europe and Southern Africa. Some of the
projects requiring capital and technology in the CIS, Africa and Latin
America are technically very attractive. The end of the 'cold war' and the
influence of the IMF is gradually changing their risk profile for mining
investment.