Overseas Private Investment Corporation Minerals Program

I appreciate this opportunity to discuss with you OPIC's new policies designed to assist U.S. minerals companies in developing new sources of minerals overseas. A comparison of recent figures on U.S. investment in mineral exploration, development and production gives results which are remarkable --and disturbing. Through the 1960's the flow of U.S. foreign direct investment in mining and smelting in the developed and less developed countries were nearly equal. However, by 1973, roughly 80% of all exploration expenditures by mining companies was taking place in the developed countries and principally in the U.S., Canada and Australia. Clearly it is to the interests of both the developing countries and the United States to put these figures back in better balance. As you may be aware, the administration as a whole is examining systematically what can be done by government to reduce the disincentives and increase the incentives to mineral investment in the less developed countries --the LDCs. A subgroup of the National Advisory Council chaired by the Treasury Department has been formed to coordinate U. S. Government policy and program efforts relating to mineral and energy development in these countries. Among other matters, this subgroup will examine how public policies could positively influence the private investment decision-making process in the minerals industry.