The World Bank – Its Role in Fostering Mineral Development

The mineral industry of today is faced with a number of dilemmas, not the least of which grows out of the series of related facts-world mineral consumption is growing, and is expected to continue to grow; maintaining adequate capacity to meet needs will require very great capital investment over the next decades, investment which must be measured in billions of dollars; much of the new production must come from remote and relatively underdeveloped countries; many of the areas in which such development must take place are not areas in which private capital enters without some trepidation. There are real problems in financing new mineral development-problems which have occupied the thoughts of many in the industry. One group which is currently providing part of the answer, and perhaps pointing the way to further progress in the future, is the World Bank. Loans from the World Bank are arranged usually for countries which are attempting to develop their economies through expanded industrial production. More often than not they are for the development of electric power projects or transportation facilities. Although we consider the mineral industries to be basic factors in industrial development and very important factors in the early stages of development of a country, few of these loans are for mineral development-no more than a half dozen out of a total of well over 300 loans which have been granted to date. Yet the World Bank has played a far more important part in world mineral development than these figures would indicate. The few loans for mineral development which it has made are important, but of considerably greater importance are the secondary effects of many of the non-mineral development loans and some of the special services which the Bank also offers.