Most major mining companies in North America are now active in Latin America and are being rapidly followed by the middle- and junior-tier companies, according to a private research firm based in Denver, Colo. About 130 Canadian and 50 American companies, currently active in Latin America and the Caribbean, are leading this exodus. Based on annual report disclosures, this number is predicted to grow substantially over the next two years, says Balfour Holdings in its report Exodus to Latin America. North American companies look abroad for opportunities as a result of increasing environmental costs and potential changes in the U.S. mining laws, lack of Canadian flow-through funding and the inability of companies to discover significant ore deposits in the U.S. and Canada. During their searches, they are encountering many lesser-developed but resource-rich countries, which are also changing from nationalistic, dictator-driven economies to ones that promote democratic rules, privatization of industry and a strong willingness to become an active partner in the global marketplace. This transformation is tangibly being accomplished through sweeping reforms in corporate, tax and mining laws.
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