Foreign Minerals And American Capital

THE disastrous effect of two major wars on foreign economic health is giving American capital opportunities which might have not otherwise developed. At a time when discovery of major orebodies in the United States awaits fuller application of new geophysical tools and technical methods, U. S. investors must seek other fields where investment may be put to work. The unsettling effects of war have made it almost impossible for foreign nationals to develop mineral wealth, permitting Americans to enter at a time when U. S. mining, with a few exceptions, is in the process of expanding known orebodies and developing only a few new ones. Available capital, however, is not the only pre- requisite for entering the foreign mineral development field. The capital must be able to work in favorable economic atmosphere, a condition not easily satisfied in a world constantly in a state of political and social flux. In many countries, the political theory changes as often as the wind direction in March. Thus, the political stability of the form of government is of prime importance to the investor. In addition, a balanced budget and a moderate tax structure are important. Because in making foreign investment it is inevitable that one will have dealings with government officials, it is basic that they must be of high integrity. In countries filling the requirements, it will usually be found that the economic initiative of the individual is respected. Newmont Mining Corp.'s three major investments in the last 15 years have been in Canada and the