Government role in financing strategic minerals
The Government is mainly concerned about the availability of resources, and raw materials in particular, as they affect the country. In some cases it may make sense for the Government to in effect buy insurance by providing marginal assistance or additional incentives to help ensure the availability of these materials. Looking at the Government's role in finance in the future one also really ought to look at what things the Government can do and what Government actions affect in terms of providing a favorable climate for mining investment. Mining ventures are very, very capital intensive.Statistics highlight how much capital is needed to bring on a major project. Certainly, within the U.S., high interest rates affect the availability of capital and how to finance these projects. If one is financing projects at 17 or 20 percent, and the Government is paying 15 percent on risk-free long-term Government securities, a person has to be able to foresee a very significant return on his money when taking into account the risky nature of the mining business.
- Research Organization:
- Federal Emergency Management Agency, Washington, DC
- OSTI ID:
- 6756155
- Journal Information:
- Mater. Soc.; (United States), Vol. 6:1; Conference: 1981 Mineral Economics Symposium, Washington, DC, USA, 10 Nov 1981
- Country of Publication:
- United States
- Language:
- English
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