Mining opportunities in Latin America featured

The mood was bullish at the third annual “Investing in the Americas” conference, which brings together the mining sectors of North, Central and South America.

The 5-day show, staged at an ocean-side hotel just north of Miami, featured 94 exhibitors and a registration of 1,500-1,600. The Canadian junior mining scene was well-represented, as was Latin America; representatives from the many Latin American countries seeking to promote mining within their jurisdictions included mines ministers and other government officials. While the conference focused mainly on investment opportunities in Latin America, the Canadian scene was not forgotten. For example, at a workshop on project financing hosted by Toronto-based investment banking firm IBK Capital, William White, president of IBK, predicted the development of at least three diamond mines in Canada during the next several years — “two in the Lac de Gras area (in the Northwest Territories) from mining kimberlite pipes, and one from mining coastal deposits.”

The list of Canadian juniors and seniors now active in Latin America continues to grow. Difficulty in raising funds for domestic exploration programs and environmental regulations are two oft-cited reasons for the exodus to Latin America.

The Ontario government, for one, decided to fight back. In an effort to inform investors that the province welcomes and encourages new mining initiatives, the Ontario Ministry of Northern Development and Mines sponsored a booth at the conference. And the provincial mines minister, Shelley Martel, made a presentation promoting her province’s mining scene.

Attending as a delegate was Jacques Bonneau, vice-president of exploration for Quebec Crown exploration company Soquem. And representing the U.S., which has also witnessed a flight of mining capital to Latin America, were the Bureau of Mines and the U.S. Geological Survey, each of which sponsored booths.

Among the active countries in Latin America is Peru, which has attracted seniors such as Newmont (NYSE) and American Barrick Resources (TSE) and a bevy of juniors. According to Raul Otero, chairman of Minero Peru, investment in copper projects in 1993 and 1994 will double the country’s copper output. Analyst David Williamson of London was optimistic in his metals price projections. “I remain quite confident the bear market for gold is over,” he said. As for base metals, he believes the low point in the price cycle occurred in 1993. “The price recovery is dependent upon global growth,” he said.

In a discussion on the financing of Latin American projects, Philip Martin, an analyst with Toronto-based Gordon Capital, said money will continue to be raised by TSE- or NYSE-listed companies. Eventually, he said, management will gravitate to the location of the company’s assets, but the TSE or NYSE listing will be retained.

The three “hottest” Latin American countries for mining investment in 1994 will be Peru, Venezuela and Cuba, Martin predicted.

In addition to the large Expomin ’94 trade exhibition and “Mining Latin America” show scheduled for mid-May in Santiago, Chile, at least two countries are planning mining conferences this year — both Venezuela and Argentina have scheduled October shows.

Seniors Echo Bay Mines (TSE), Teck (TSE) and Lac Minerals (TSE) had booths at the conference. Promoters in attendance included Murray Pezim and Robert Friedland.

The Florida conference is one of several mining shows organized by Miami-based International Investment Conferences Inc. Joining New York City, Las Vegas and San Francisco as the sites of investment conferences this year is London, where a forum in October is planned.