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Title: The private sector role in financing mineral development

Abstract

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.

Authors:
Publication Date:
Research Org.:
Manufacturers Hanover Trust Co., New York, NY
OSTI Identifier:
6584256
Resource Type:
Conference
Journal Name:
Mater. Soc.; (United States)
Additional Journal Information:
Journal Volume: 6:1; Conference: 1981 Mineral Economics Symposium, Washington, DC, USA, 10 Nov 1981
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; COMMERCIAL SECTOR; FINANCING; MINERAL INDUSTRY; COMMERCIAL BUILDINGS; FINANCIAL DATA; MEETINGS; MINERAL RESOURCES; RISK ASSESSMENT; BUILDINGS; DATA; INDUSTRY; INFORMATION; RESOURCES; 290200* - Energy Planning & Policy- Economics & Sociology

Citation Formats

Baiz, III, C F. The private sector role in financing mineral development. United States: N. p., 1982. Web.
Baiz, III, C F. The private sector role in financing mineral development. United States.
Baiz, III, C F. 1982. "The private sector role in financing mineral development". United States.
@article{osti_6584256,
title = {The private sector role in financing mineral development},
author = {Baiz, III, C F},
abstractNote = {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.},
doi = {},
url = {https://www.osti.gov/biblio/6584256}, journal = {Mater. Soc.; (United States)},
number = ,
volume = 6:1,
place = {United States},
year = {Fri Jan 01 00:00:00 EST 1982},
month = {Fri Jan 01 00:00:00 EST 1982}
}

Conference:
Other availability
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