National Mineral Policy 2006 - Department of Mines

1.21 This situation has changed dramatically, and today investors have unprecedentedopportunities to access prospective geological areas in almost every region of the world.Almost all countries in Latin America routinely seek both domestic and international mininginvestment, as do the North American nations. African nations actively promote theirgeology, hoping to attract investors. In Eastern Europe, investment barriers have beeneliminated, and foreign owned mines are being developed in Russia and the Central Asiancountries. China has taken steps to allow foreign participation in its mining industry. Mostcountries have concluded that the goal of national self-sufficiency is outdated in a worldwhere ready access is available to deposits and mines worldwide. The privatised miningcompanies of China are acquiring mines in Peru and Australia, CVRD 3 of Brazil is active inAsia and Africa, and Indian firms, such as Hindalco and Jindal Steel Works, are seeking thebest deposits wherever they may occur. This changed policy environment has been reflectedin legislative reform across the world and between 1985 and 2005, more than 100 nationshave drafted and adopted new or amended mining laws.1.22 In today’s global market place, minerals are readily available from multiple sources,either through direct purchase or through acquisition of domestic and foreign deposits andmines. Most nations today rely on the private sector to make exploration decisions. Instead ofnational self-sufficiency and uneconomic production of nationally scarce minerals, the globalmarket place has changed the goal post, and access to supplies of natural resources and accessto markets for such resources are being sought simultaneously by nations. Comparativeadvantage can express itself through benefits of location to domestic industry, such as savingsin freight.1.23 In today’s world, governments perform three primary functions in the minerals sector,viz. information collection and dissemination, regulation, and tax collection. Collection anddissemination of geological information is an important task of government in most nations.Most nations maintain a geological survey that collects an array of information useful forunderstanding the geological situation. In the past, many geological survey and stateexploration organisations were involved with every aspect of the exploration process—fromgeneral mapping to delineation of deposits by drilling. Today, it is rare for governmentagencies to explore for mineral deposits. Instead, these agencies focus their limited budgets3 Compania Vale Do Rio Doce.14