Crisis or Opportunity - Strategy and Area Selection Methodology in Developing Countries

WMC was a late entrant into Indonesia in mid-1996, but had considerable experience and success in exploring in Asia, particularly the Philippines since 1988. Given the geological similarities to the Philippines and IndonesiaÆs superior æcradle to graveÆ Contract of Work (CoW) tenure system, the entry into Indonesia was a logical decision but nonetheless a result of detailed planning. At the time of WMCÆs entry, Busang in Kalimantan was still a 60 moz wonder and the euphoria of this apparent discovery had overflowed into every aspect of exploration. Many junior mining companies and tenement speculators were clamouring for properties in Kalimantan, whilst other serious and capable explorers had to compete for properties and exploration personnel in an era of high and often unrealistic expectations. The picture in late-1998 and through 1999 is dramatically different, as the worldwide downturn in the price of most metals coincides with financial and social crises throughout most Asian countries. The impact of this has been particularly severe in Indonesia and when coupled with the negative sentiment of the Busang fraud has resulted in an exodus of junior companies and also some of the majors. This is understandable given the much publicised social unrest, uncertainty of government, mooted changes to the eighth generation CoW, increasing illegal mining and heightened community expectations. The reality however is somewhat different and although clearly a crisis in many respects, it is also a time of great opportunity.