Mineral Industry Financing: The Link Between Planning and Action

Mining and metallurgy are more capital intensive than all other industry in Australia. Capital demands are met by domestic and foreign sources of finance for whom the major constraints are the supply of funds and factors of risk and uncertainty. in both mineral development and institutional financing policies, specific options are available to administrators which would allow mining to benefit from a more reliable supply of capital. The strength of major partners involved and overseas participation are important aspects of financing mineral developments. Future changes in financing for the mineral industry are considered most likely in variable interest rate funding, in the leasing of major plant items, and in the development of flexible techniques to ease the burden of infrastructure costs. In a consultancy sense, financiers are available to mining to assist with and to advise on optimal develop- ment of mineral industry projects.