The pendulum swings

"The pendulum in Ottawa has swung dramatically from fiscal policy to monetary policy over the last several years. International trends indicate that the pendulum has to start its swing the other way, if Canada's mining industry is to maintain its preeminent position in the global mining arena. This article, which is based on a paper presented by the author at the 37th Annual Meeting of the Newfoundland Branch of CIM, identifies these trends and how they could interact with Canadian policy.IntroductionThe title of this paper is not a very imaginative or catchy one, but it states the topic quite succinctly, if not tersely. This paper looks into a crystal ball to see what might be in store for mine financing over the balance of the current decade.In the event that the reader feels some trepidation about the prospect that such a paper could seek to be the definitive work on the subject, it should be made clear at the outset that this is not the case. The author is, after all, not an economist, a scholar, a financial analyst, or a soothsayer, but is rather a simple accountant who has been closely involved with the mining industry, and the financing thereof, for some twenty years.The paper recognizes that, while a mine may be born when production begins, the mine is conceived when exploration starts. As this act of conception is obviously an essential part of mining, the financing of exploration is also covered in this paper. To attain a focus, this paper approaches the topic of mine financing in the nineties as follows: first, the major emerging forces in the industry are identified: and, second, the implications of each of these forces on financing are considered."