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NEW DEVELOPMENTS IN THIRD WORLD MINING AGREEMENTS
Author(s) -
ZORN STEPHEN A.
Publication year - 1977
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/j.1477-8947.1977.tb00063.x
Subject(s) - business , balance (ability) , capital (architecture) , finance , resource (disambiguation) , developing country , international economics , economics , economic growth , geography , medicine , archaeology , physical medicine and rehabilitation , computer network , computer science
The long‐term trend toward mineral resource development agreements that reflect the desires of developing country governments as well as those of foreign investors is not always clear‐cut. At times, conditions in the market for a particular mineral and general financial conditions may affect the balance of bargaining power between governments and investors. Mr Zorn's analysis of two recent copper agreements, in Panama and Papua New Guinea, shows that foreign investors have been able to achieve favorable provisions for the early return of capital and for ensuring investor control over key management decisions. At the same time, the host governments have won provisions that may increase their ‘take’ from the projects in the longer term.