IMM Transactions/AusIMM Proceedings

Preface to thematic group of papers on 'mineral law and policy'-

The exploration for and discovery of mineral resources are dictated primarily by geology. However, the mineral investment decision-making process is influenced increasingly by mineral law, policy and the economic, fiscal and institutional regimes within target countries. In the past decade there has been a significant increase in foreign direct investment by international mining companies in developing countries. This has been driven to a large extent by widespread economic liberalization and privatization. Many developing countries have reviewed, or are reviewing, their legal and politicalŠeconomic systems to help to attract private foreign mineral investors.

Recent research* indicates that the significant corporate determinants for mineral investment, listed in order of importance, are: (1) geological potential for target metals and minerals; (2) political stability; (3) mineral law - i.e. mineral ownership, security of tenure (right to mine), exploration and mining terms, right to transfer ownership and access of the investors to mineral resources; (4) fiscal regimes - the stability, predictability and equitableness of tax regimes, ability to repatriate profits, level of tax liability, reasonable foreign-exchange regulations and permitted external accounts; and (5) institutional factors. Accordingly, these issues are of great importance to all professionals involved in the discovery, exploration, development and exploitation of mineral resources, as represented by the readership of Applied earth science, and it is hoped that readers will find the present group of papers addressing mineral law and policy issues both relevant and an interesting digression from the geological and technical papers more usually published in the journal.

I would like to thank all the authors who contributed papers on this theme and all those involved in its publication - in particular, Kevan Ashworth for presenting me with the challenge, Wardell Armstrong for allowing me the opportunity to pursue the project, Janeth Warden-Fernandez, Mining Programme Leader at the Centre for Energy, Petroleum and Mineral Law and Policy at the University of Dundee, for her help in assembling papers and Simon Dunton for his assistance in bringing it all to fruition.

- P. G. Morgan