Latin America - riches and risks--Recent issues in Bolivia highlight problems for mineral investors

摘要

With the Latin American continent only partially explored and evaluated for mineral resources, there is no doubt that further significant mineral discoveries lie in wait. Indeed, there are already potential economic reserves of minerals that remain undeveloped, and are attractive to overseas players. However, poor economies and political instability have dogged the investment climate in this region in recent years. This month's reports from Bolivia relating to borates development signals that conditions are far from improving (see News at Core). In terms of mineral investment spending, Latin America accounts for some 28 percent of the world total, of which half is invested in mineral deposits in the central Andes. Exploration has suffered in South America due to low gold and base metals prices, while industrial mineral exploration and development has been sporadic. Most countries have seen either a reduction in activity or even total withdrawal by firms that were previously active. Argentina has seen a constant reduction in exploration expenditure since 1997.