The private sector role in financing mineral development

Conference · Fri Jan 01 04:00:00 EST 1982 · Mater. Soc.; (United States)

OSTI ID:6584256

Baiz, III, C F

The role of the private sector, specifically commercial banks, is one of growing demand in financing mineral development as these projects become more capital intensive. From straightforward lending, to various forms of project financing that today borders on the exotic, to technical analytical capabilities on an in-house basis, the commercial bank has a definite role in the funding of metals and mineral development. However, from the outset, the single most important, yet most misunderstood, concept of a commercial bank's money must be pointed out. That is, the commercial bank is a source of debt capital, not equity capital. The commercial bank does not expect, nor does it get, the equity returns on its money lent. Therefore, neither will it accept the risks assumed by equity capital. These equity risks are correctly placed as the responsibility of the corporative shareholders.

• Research Organization: Manufacturers Hanover Trust Co., New York, NY
• OSTI ID: 6584256
• Conference Information: Journal Name: Mater. Soc.; (United States) Journal Volume: 6:1
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
BUILDINGS
COMMERCIAL BUILDINGS
COMMERCIAL SECTOR
DATA
FINANCIAL DATA
FINANCING
INDUSTRY
INFORMATION
MEETINGS
MINERAL INDUSTRY
MINERAL RESOURCES
RESOURCES
RISK ASSESSMENT