Developing Resources In China And Southeast Asia

Introduction As the world economies continue to face an increased demand for natural resources to support growth in the established and developing world, the western mining industry has expanded its operations and funding of mineral developments into new and relatively unexplored regions of the world. Mining companies worldwide, in order to grow in a global economy, are now actively exploring and developing mineral resources in the emerging markets of South and Central America and most recently have expanded activities throughout Asia. South East Asia Resources (S.E.A. Resources) has recognized the vast resource potential offered by countries such as China, India and Indonesia, Asia's main driving forces of economic growth and has made a commitment to be actively involved in the area. These countries rich in mineral resources, represent some of the highly prospective and underexplored regions on earth. Their vast potential has been underestimated because of political reasons and overlooked as Central and South America still continue to be the focus of exploration for many mining companies. Most of these Asian countries have faced a prolonged period of political unrest and it has not been until recently that they have begun to enjoy a relatively stable political climate which has encouraged foreign investment, growth and economic development. These countries are in need of capital to develop their infrastructure and market economies. Their wealth in resources is one of the best methods to achieve their goals. Gold is usually one of the first targets to be extracted from developing economies. Equivalent-sized gold projects tend to cost less to develop and require less supporting infrastructure than base metals. These projects are easier to finance and, most important of all, tend to give a quicker return on investment than that offered by base metals. They also provide the economy with precious foreign exchange, international investment and the technology required to build the country. Following is a graph representing the global re-allocation of the total capital investment on the twenty largest gold projects now under construction with the total for those under construction in 1990.