Diversification Overseas - The CIS Experience

Why go to the CIS? The vast mineral potential of the Commonwealth of Independent States (CIS) has long been recognised, but it has taken the lowering of the iron curtain to open up the region to serious mineral development consideration by the Western World. The advent of a free market economy and the emergence of the Independent States with pressing needs for foreign investment has led to a greatly improved investment climate. Coupled with the desire for some of the more entrepreneurial resources companies to head the wave of investment to the region, this sequence of events has promised a great deal, but delivered only modest progress to-date. Potential gold project development has provided the major focus, for three reasons: the region is highly prospective for gold, gold projects tend to have a relatively lower start-up capital cost compared to base metal and fossil fuel projects and finally bullion or refined gold is more readily transportable and easier to sell.