Conflicting objectives of governments and mineral companies

Depletion of economically mineable mineral deposits in the industrialized nations is resulting in a greater proportion of minerals being mined in the less developed countries (LDC's). This trend will be greater in the future, which means that there are likely to be more mineral agreements for exploration, production, and marketing between multinational mining companies and LDC governments, who, typically want to participate in some manner in major mineral projects. Lack of understanding each other's objectives and requirements in mineral agreements causes unnecessary conflict on a range of issues, some of which are discussed. The more difficult issues relate to money matters and guarantees, which can usually be defined and discussed, even if they cannot always be solved to everyone's satisfaction. Perceptions about political stability and the LDC government's attitude towards foreign investment and business operations perhaps have an even greater influence on the investment decision than do the quantifiable issues, but are much more difficult to deal with. 1 figure.