Conference focuses on global opportunities

In the aftermath of the Cold War and the subsequent collapse of the Soviet Union, countries have to earn their way on to the world stage. As a consequence, many emerging nations are bringing in new mining codes and investment laws to attract foreign capital and mining expertise. This has resulted in a wealth of opportunities for junior and senior mining companies around the globe.

These opportunities were front and centre at the “Global Emerging Markets ’94” conference staged recently at an old brewery in London’s financial district.

The 2-day show attracted 30 exhibitors and about 640 delegates from North and South America, Australia, Europe, Asia and Africa.

The first day of the conference opened with general presentations on emerging markets, which, by convention, are defined as small regional economies that are growing and seeking foreign investment.

Several speakers predicted that gold would be the star performer in most developing nations. In his keynote presentation, Richard Pomboy, president of Pomboy Capital, said that during the 1980s and 1990s, gold shares exhibited a good rise in price over bullion, and that they are poised to rise again. One of the catalysts for growth in the gold sector is an increase in demand for jewelry and bullion, especially from China and the Far East. The general presentations were followed by talks on mineral potential and investment opportunities in Africa, Cuba and Central Asia. Countries in the spotlight included Ghana, Zimbabwe and Tanzania.

One of the biggest African success stories to be highlighted was the Ashanti gold mine in Ghana. Originally a high-grade operation, the mine has yielded more than 22 million oz. gold during its 97-year life.

In 1992, the company embarked on a program to upgrade pit operations, mechanize the underground operations and build a surface treatment plant. With these improvements, the mine is on track to produce 1 million oz. in 1995. Total reserves at Ashanti are estimated at 73.6 million tonnes grading 7.6 grams gold per tonne, representing 18.1 million contained ounces of gold. Samuel Jonah, chairman of Ashanti Goldfields, proudly pointed out that the mine was operated by an African mining company, not a subsidiary of a worldwide mining conglomerate.

Technical sessions on day two focused on mining developments in Latin America. In his keynote address, H.A. Buchi Buc, the former minister of finance for Chile, provided an overview of the investment climate in South America. He said he sees “a changing mood in Latin America,” as more and more countries reform their mining and investment laws.

According to Buchi Buc, three things are required for sustained growth: low inflation; high levels of export; and high levels of investment. At present, he added, only Chile is experiencing continued growth, but several other countries, such as Argentina, Bolivia and Peru, are poised to do so. In a review of his company’s projects around the world, Klaus Zeitler, president of Metall Mining (TSE), told delegates that “emerging nations often have surprisingly good infrastructure.” As an example, he cited his company’s ability to bring two projects into production, on time and on budget, in two developing nations.

In Turkey, Metall is putting the finishing touches on the US$155-million Cayeli copper-zinc deposit. The underground mine, which has reserves of 10.6 million tonnes grading 4.7% copper, 7.3% zinc, 1 gram gold and 68 grams silver per tonne, is expected to produce 110,000 tonnes of copper and 70,000 tonnes of zinc concentrate per year.

Meanwhile, in Tunisia, Metall has a 45% interest in the Bougrine underground zinc-lead mine, which contains 5.3 million tonnes grading 11.7% zinc and 2.6% lead.