Environmental Aspects an Increasing Part of International Mining Projects

It appears that the competition for increasingly scarce international mining investment capital will continue among developing countries. Indeed, there is growing evidence this competition may be on the verge of becoming destructive and cutthroat in nature. While this may be viewed as good news by short-term, speculative investors, it could have dangerous repercussions for international minerals producers over the long-term. It seems there has been a continuous parade of traveling foreign delegations touting the virtues of mineral investment in one country or another. These pitches all contain the politically correct key words, such as macro-economic reform, political reform, privatization, liberalization of laws governing mining and related investment incentives, reconciliation of ownership and right-to mine issues, and tax reform specially tailored for the minerals sector. Unfortunately, some of the information being trumpeted is based on plans, concepts or hopes for change rather than actual reforms approved by all necessary governmental entities. In yet other situations, the information provided consists of half-truths at best. Too often, potential minerals investors, faced with metals and minerals prices hovering near their recession lows and the need to offset old, high-cost operations, desperately want to believe all they hear about investment alternatives cast in a near-utopian setting. However, the virtues being proffered for mining investment abroad do not eliminate the need for careful scrutiny of subtle variations of traditional risks associated with foreign investment that can drastically affect the economic viability of mining projects.