AUSTRALIAN RESOURCE DEVELOPMENT - CAN FINANCIAL REQUIREMENTS BE SATISFIED?

Abstract

While it is of the utmost importance to maintain Australia's existing level of self-sufficiency in the production of oil and its related products, this industry receives very little tangible support for its endeavours in this regard. When the participants in the industry require finance, particularly for project development, they find that they have to compete on the open market for the necessary funds. In the coming decade there will be very heavy demands placed on the financial markets in this country, particularly from the minerals area where huge amounts of capital will be required. Additionally, we can expect certain sectors of the community to receive favoured treatment at the expense of the more efficient sectors.

During the mineral boom of the early 70s the percentage of foreign ownership of Australian resources increased. During the 80s it appears that the reverse may be the case, as greater Australian participation in the development of this country's resources may be required. Accordingly it may be more difficult to have the Foreign Investment Review Board approve an application from a possible foreign partner who is willing to inject capital into a project.

These possible restrictions on fund raisings may result in delays for many projects and could well cause the cancellation of others which are now marginally feasible.