Foreign Investment And The Changing Pattern Of Mineral Supplies ? Introduction

The demand for mineral raw materials, especially in the major industrialized nations, has grown rapidly during the past three decades. One consequence of this growth has been an increasing reliance by the large industrialized countries upon nondomestic mineral supplies. These mineral supplies, to a large extent, have been developed by capital from the major industrialized countries. Until recently, most foreign mining ventures were either wholly-owned subsidiaries or joint ventures between two or more mining companies. The recent rise of economic nationalism has substantially changed the business climate and parameters under which foreign investors operate. This paper describes some of the underlying reasons for this change and notes how investors have adapted to the new business conditions.