Word document to describe Global vision for Mining Ventures

1. Vision for Global Mining Ventures
1
Heinrich J Scheffer – 22 November 2012
Index:
Introduction: New Foreign Exchange directive for depleted and scarce minerals.
Geographical Political system. (Geopolitical)
Demand
Abundance of resources
Risk
Possibilities in production and estimates
Countries which seem to be the hub of mining interest are: In no specific order.
Scoring investment points
Scarcity of resources and recycling
Vision for the future
Labor availability and restrictions
Responsible mining with the background of water ethics: Environment
Trade Wars
Structures of Investment
Summative Assessment
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2. Summary Assessment:
Mining in general is in a good position to unfold as the global fiscal savior of the Century.
We are at the threshold of a super boom of mining exploration endeavors. Never before has
there been so much activity with such a heavy or dense score in increased pulse
management. Not every investment by definition will bear the fruit of positive ROI. Every
mining venture will however add to your speculating personality. Mining will never fail to
demand your emotion in its arrival at the experience table contested. Whether that is a loss
or profit do not count for much. It is seizure time, visualize the experience, of profiting from
mining, but nothing encapsulates the true sense of gambling like the run of a loss excursion
in a venture so desolate from your view and so close to a war zone. It resembles
sunbathing on the deck of a schooner while landing at Normandy in the 1940’s.
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1. Introduction
Mining is today one of the only visible means to overcome the fiscal condition of Fiat money.
The reason for this is that it is the start of the page which continues toward profit. Without
mining everything else will not be possible. The only next thing which is serviceable is food
production. In the world, the things we get free have not been receiving a good valuation over
time. It may be time now to tag these items and put value to them, real market values in line
with scarcity modules.
How will we decide what is a free product.
That is quite easy. Everything which we cannot manufacture or make from existing technologies
is free. Can we make gold, diamonds, lime, hydrogen, etc?
Can we invent the growth which plants need to find maturity? The growth medium can be
enhanced by products which are called fertilizers. We cannot improve on the seasons, water
science, sun and heat, the way things grow and the speed with which they do it. We cannot
make seeds. They have to be available else we are in trouble. Can we make a tree fully grown?
No! We have to plant a seed which is free, then feed it water which is free, then wait for a
seasons of some odd years to give free growth. There is nothing we as humans can include to

3. make free worth more until we harvest. This is true for anything that produce life, like humans,
animals and other creatures.
So all this is free. But some of it has limited availability, like resources.
The amount of Mining prospecting licenses in circulation have escalated to such a height that it
is almost impossible to believe that the commodities will bottom out at some time in the future.
We are told about things like yield coupled to time scales and scientists suggests timelines for
product severance to twenty and thirty years of production.
Although this is true, it is true only for sites which have been surveyed. There are billions of
acres of land which has never been surveyed and not included in this forecast. The way the
research is done is by means of seismic beams and based on distortion. Although this is fairly
accurate, it is totally inaccurate when formations of matter are not static or predictable. Let us
look at an example: The way they decide the size of an oil field is to project a seismic beam
through the crust and Mantle, beamed toward the other side of the world and they catch the
seismic beam on the other side. If the compounds in the crust are the same, the beam travels at
a certain speed. When it hits water the beam is skewed and travel changes. They compensate
for this by projecting this beam with water skew already programmed for the direction to be re-
aligned and measure the time the travel takes to reach the target. This is usually the way to find
the size of an oil field. They even know how fast this beam moves through the sea water to be
able to remove it from the calculated equation. It is however not hundred percent trusted
because some other types of scientific compound lies between the seabed and the result, which
may distort the quantifiable speed at which the interceptor represent the evidence. This could
result in a skewed result and this method still has a reasonable chance of inaccuracy.
Scientists also say that the earth’s crust has multiple supplies of every commodity, in all, the
ground formations are not selectively positioned in any particular country. It is true that there
are concentrations and these pockets which is the wealth we are extracting every day. We have
become so accustomed to predict outcome on sites where there is abundance that we neglect
to realise potential on sites, where maximum production is discernible. It is even in the ground
under waters, like the seabed where we find oil. It is then very probable that the scientists are
contradicting the flow of mining results and mineral flow charts, for the next Century. It is
evident from this that we should not be alarmed at this as an obstacle to efforts in mining. We
should however be alarmed to be careful about the quantities we extract. Inevitably, there will
be a result which would be zero.

4. Another conflict resolution is of course recycling. If the reserves have come to an end in the
mining cycle there will be much for recycle because the other strange thing about commodities
like gold, silver,. etc, is that we cannot change the chemical into anything else which could
disappear or evaporate completely. There are exceptions though. One of these is Mercury Hg
with Proton number 80. It is called a transition metal and can be vaporized and is used in
fluorescent lamps.
Yes, there are evaporation equivalents and these might not be redeemable for our use without
serious scientific interventions, but it will never leave Earth’s atmosphere. From this you can
believe that science says the 100,000 tons of gold which has been mined to date will always
remain 100,000 tons, unless we add to it, or change it into a gaseous compound. This is also
common sense.
The only thing that might happen is that the item will become scarcer and cost more. As
demand increase this will become a challenging factor. We will have to find alternatives. The
complete deletion of commodities is impossible. The destruction of it is impossible as well.
It is my conclusion that commodities will be revalued in the next ten years. This will bring new
weight to investments and the only products which might not overcome market pressure to
inflate in price are Iron and steel ore and products. Is this why the Buffett’s of this world is
buying into gold right now? I think they can see a revaluating process coming to the table and
could only favor their investments.
2. Geographical Political system. (Geopolitical)
The sun is shining over the mining world. Every Continent is reverberating with action and the
global markets rely on supply of commodities from these mines. Globally there are many
resources and the scale of mining in this Century has become significant. Water is scarce,
especially some arid areas bordering desserts. This has been known to man for a very long time
but have become so used to scientists finding a road around a breeched phenomenon that we
just hope to escape the session in which the droughts are mounted. Mines cannot operate
without water. This water is under significant stress and this is a platform of concern which
mining operators in the world picture will have to address. Man has circumvented this with
knowledge and ingenuity. Mines are now popping up like mushrooms, commercially intended,
all the way down to prospectors fishing for a few grams of gold a month, in a river basin. If a
survey of a Geological find shows credibility, the investors jump in to make a few Dollars from it.
Demand for raw materials across all economical boundaries has surged in the last two decades.
Providers have risen to factor in their levers and there is now an over-supply of certain base
elements. Although the global economical output figures has an array of negative influences we

5. find that more and more Investors are turning to mining for the security they need in their
investments.
The global glut in these selected elements is no reason to stop the exploitation of the reserves.
As the inflation rate takes its toll on economies it will become more expensive to extract those
reserves over time. It is a point in question at the moment where we see that mining companies
like PHP Billiton, who is making preparations at their Australian and Brazil Iron ore extraction
plants, to be leaders and excel in this field. They are broadcasting aggressive surges into Capex
structures which will make their extraction methods more equitable. They and the companies in
China are stock piling huge quantities of the ore (99 Million tons in reserve at Chinese Harbors)
at the time of this paper.
Politics play a huge role in the success of mining ventures. We find this in Counties like the
Democratic Republic of the Congo where strife and faction battling, has had little effect on the
mining industry. This is mainly due to the size of the Country. The DRC spans two to three
timelines and the warring elements are positioned on the East side of the country while most
mining activity is concentrated on the West Coastal regions. The companies involved in mining
in these type countries are very exposed in the day to day surface conditions of political change.
Fortunately the various countries who have a stake in global fiscal and humanitarian balance has
a feverish and sincere wish to make these warring countries stable and are consistently
organizing efforts to keep violence in check. Most of the warring is in fact the need of local
groups to take control of the mining purse. This seems to emulate the revolution in the Arab
Countries where groups like the Brotherhood of Islam, are using the uprising to take control of
the region, who are warring for control of the oil rich regions. Destroying the reserve and
structures are not in their best interest.

6. Global politics are changing to align with Western norms/standards and the emerging markets
are under pressure to comply with global expectations. This is the policing factor which will
provide for better security, as the profit of the bureaucratic system.
3. Demand
Why is mining and resource development in such demand even when the risks are great?
It has been an economic fact that getting the resource as a free made vehicle, which only need
scientific welding to conform it into our most needed commodities, is as cheap as oil is. If no oil
was present and the technology of the car was, we would have had to make oil and fuel from
nothing notable, to make a vehicle go. This would have been a significant feat without
supporting elements like coal to make science work. So having the oil available made the cost to
sale elements much cheaper. This is the same in the case with other commodities like Gold,
Diamonds, silver, Copper, etc.
The only actions which are forever haunting economic viability is political and religious stability.
In countries where we find a truce in these climates there are no uncertainties. The progress can
continue and has a ground breaking affect on prosperity of communities subjected to the wealth
management. Mining usually brings technology to the shore of the construction site and is
therefore a good income generator for everybody who participates. If a climate of political strife
is in the envelope of the Country’s overall cycle of events, it becomes extremely difficult not to
be hampered in the construction of the operation and dividends are seldom forthcoming.

7. 4. Abundance of resources
We find in our latest surveys that there are more resources all over the world than we can dig
up and spend in the next Century, even if we invite fifteen billion people to feast on it. This is
actually amazing sins we always had the Geo knowledge-insert that there were limited supply.
With the Industrial revolution making huge inroads into mining and its sustainability, we saw
more investors enter into mining markets in the last two Decades than in the previous thousand
years. As our populous exploded into a manifold of wealth, the demand for critical elements
became a nauseating factor. We literally put the wagons in front of the oxen to get this
approach, over the river of technological advance, and the obstructive selling markets. Although
there is sufficient technology and knowledge, mining still has its bridge too far. Risk is always
rather a probability than a possibility. The existence of mineable deposits and their frequency
and abundance in nature, corresponds closely with the chemical composition of the earth's
crust. Silver, for instance, occurs in nature 19 times as frequently as gold. If we imagine a
pyramid with high grade at the apex and low grade at the base, then we can easily see that as
we lower the grade that is economic to mine, the available reserve tonnages goes up. We
should not be surprised to find the world is awash in low-grade copper deposits that also
include small amounts of gold and silver. Resource development in the 20th century has been
marked by the growth of large-scale mining and technological development that enabled the
use of economies of scale.
5. Risk
It is estimated that only 60% of all mining operations bring profit.
THE total number of mines in the world is huge. However, the exact figure depends on how a
mine is defined. If small-scale mines are excluded (of which there are 8,300 in China alone) and
only industrial-scale operations are counted, there are some 2,500 metal-producing mines. The
average life of these mines varies dramatically; a gold mine averages some eight years whereas
a copper mine can soldier on for close to 30 years. In South Africa there are several diamond
mines that have produced for 50 years, and are expected to produce for another 50 years. The
fact is that although there are indications that we have abundant resources, mineable mineral
deposits are few and far between, and still fewer people will bring a deposit into profitable
production. The chances of bringing a raw prospect into production have been estimated at 1 in
5,000-10,000. Some deposits eluded recognition for several decades, despite intermittent
exploration of the same showings by several companies and, in many cases, claims were allowed
to lapse. There are many instances in which prospectors have revived old prospecting sites and
induced companies to drill just one more time before a discovery was made.
In a recent article from Bolivia the following came on the table:

8. Jindal Steel Bolivia, a subsidiary of the giant multi-national Jindal Group of India,
has announced it will be abandoning its share of the largest iron ore deposit in the
world, El Mutún, and breaking off its contract with the Bolivian government after
months of fractious dialogue. Jindal announced that it will be initiating international
arbitration against Bolivia. The government accuses Jindal of being behind schedule
and not making the investments it promised while Jindal insists that the
government’s investment demands are unreasonable and that it has refused to
supply the natural gas it had promised for the operation’s power needs. Local leader
Antonio Tudela believes that Jindal may sue Bolivia for 200 million dollars. The
Bolivian government had previously estimated that the Jindal mining project would
produce 21,000 jobs and 200 million per year in revenue for Bolivia. This was the
largest investment in South America by an Indian firm and Bolivia’s already shaky
reputation with foreign investors will be badly damaged. Jindal invested in El Mutún
in 2007, promising to spend 1.5 billion dollars initially and 2.5 billion over the next
eight years. The only winner in withdrawal of the mining giant is likely to be Bolivia’s
environment since El Mutún is located in the Amazon near sensitive wetlands.
From this information we have to understand that politics in Bolivia has taken
serious negative and positive turn for the country’s affluence in the past 50 years.
Tug of wars for control seems to be doing more harm than good. There is a very
acute digestion of power from the Government aligned against regional indigenous
powers. This is after all part of the Amazon belt and all investors have to look at
their housekeeping demands. Investors cannot block their own view of the impacts
on the environment in favor of profits. There has to be balance. If these factors
are taken into account, the constant vehicle of change in legislation, which sees
Communist labor parties control mining in Bolivia now, makes it difficult to keep the
eye on the ball of ROI. Can the authorities give some sort of guarantee that the
funding will receive risk free passage? If there are no guarantees of some sort,
why do investors bother with the opportunity in Bolivia. There are surely better
opportunities in other countries.
This was further article on the dangers of escalated violence from local indigenous
people:
Labor Minister, Daniel Santalla, has reached an agreement with the indigenous
villagers of Mallku Q’ota whereby all of their demands will be met including the

9. renunciation of a mining contract to the Canadian company South American Silver.
The government also agreed not to press charges against anyone involved in the
beating, kidnapping and hostage-holding of five South American Silver employees. A
villager had died, apparently from gunshot wounds, after a confrontation with the
national police. The government had insisted that the police were not carrying guns,
but a doctor later confirmed that several people, including the deceased suffered
gunshot wounds. The government has agreed to pay the medical costs of the four
wounded villagers and pay $1,150 for the death of the indigenous man that they
shot on July 5th.
After reaching the deal at 1 a.m. on Monday morning, Santalla said, “This amount is
an initial collaboration, afterwards we will see how much more we can collaborate
with this family, and also promise a job to the widow.” The minister also agreed not
to prosecute any of the kidnappers, who had broken the arm of one of their
hostages, and to never press any charges. Santalla also agreed that the locals can
use “community justice” against two of the mine workers who had “infringed on the
customs and traditions of the village.” Their trial is set to begin today at 8:30 a.m.
and it remains unclear exactly what this is for or what sentence might be given.

10. 6. Possibilities in production and estimates
Most dramatically, the mined output of bauxite (the raw material for alumina, and hence the
new metal aluminum) soared from barely 100,000 t/y (tonnes per year) in 1900 to over 125
Mt/y (million tonnes per year) by the end of the 20th century.
The rate of copper mined between 1900 and 1999 grew from around 0.5 Mt/y to 12 Mt/y. The
rise in precious metals output has also been noteworthy, with gold production for example,
rising during the 100-year period from 400 t/y (12.9 Moz) to 2,500 t/y (80.4 Moz). The total
volume of ore produced globally is almost 17,000 Mt, excluding sand and gravel. Metals account
for barely one quarter of this amount, while crushed rock (mainly limestone) is by far the
dominating commodity (by volume), accounting for some 7,000 Mt/y (40% of the total). This is
not to suggest that we are running out of metals just yet. Already-identified ore reserves, as a
multiple of recent annual production rates, represent almost 200 years for bauxite, 30 years for
copper and 20 years for gold.
The recent natural disasters in Australia, Japan and New Zealand are expected to detract ¾ of a
percentage point from Australia's economic growth in 2010-11.The strong growth outlook is
underpinned by unprecedented growth in resources investment and strong growth in non-rural
commodity exports, which are surging in response to high global prices for Australia's bulk
commodity exports. The strong expected growth in the overall economy masks some significant
divergences between sectors, with conditions outside of mining and related industries expected
to remain challenging. Tighter macroeconomic settings and credit conditions, heightened
consumer caution and the high Australian dollar are all weighing heavily on some sectors,
particularly retailing, manufacturing and tourism.
But globally, although economic conditions are challenging, mining seems to be in good stead.
There is a real good reason why some countries attract more investments than others. The
political climate and the potential stability of governments are the serious risk factors. If these
risks could be assessed and the options generated from it could be tapped, mining will be one of
the best earners for countries and investors. This is a key to investment opportunities.
7. Countries which seem to be the hub of mining interest are: In no specific
order.
The Countries I select here are not the only ones viable. There may be many more. In the forums
where I find the most comments on mining, these countries have either a crippling investor
stage, or a genuine opportunistic label. If I insert a label of risk, there is a tendency for investors
to put the pulse of their activity in areas of no risk.

11. Ghana, Zimbabwe (Risk: Regime), Namibia, South Africa (Risk: Nationalization), China, USA,
Canada (Who together with Australia have the strongest economies in the world right now)
Australia West Coast, New Zealand, Papa New Guinea, Bolivia, Brazil (Risk: Drug wars), Tanzania,
Zambia, Malawi, Morocco, Afghanistan (Where the best deposits in the world has just been
identified but where political unrest will be the tether which will determine investment),
Democratic Republic of the Congo (Risk Nil where mines are situated and always been safe
during conflicts: Ethnic wars on the East of the country, not West, spans two to three time
zones), Argentina (Risk: Nationalization), Mexico (Risk: Drug wars), Russia and Balkan states,
Croatia and some of the East European states (Risk: Politics), Nigeria (Risk: Corruption), Sierra
Leone, Benin, Liberia, Gabon, Angola, Uganda, Mozambique, Burkina Faso, Fiji, quite a few
smaller South American countries who are stable like Paraguay (Stable), Chile (Stable), Peru
(Stable), Ecuador (Stable), Columbia (Stable), etc where the risk may be higher sometimes, Ivory
Coast (Risk: Unstable political system), there may be African and European states which are well
positioned but about which I do not have enough information for a credible assessment.
8. Scoring investment points
Few mining companies have the financial resources to delineate ore reserves too far into the
future. Potash Corp of Saskatchewan is an exception, its mine reserves (at current production
rates) are sufficient for 200 years; as close to an annuity for shareholders as it is possible to get.
As a result, most of the world's store of metals and minerals remain undiscovered. Moreover, as
(or rather, when) the world's reserves of a particular commodity become depleted, the price will
inevitably rise (unless there is a readily available substitute). This, in turn, will make lower-grade
ore economic, boosting the available reserves.
9. Scarcity of resources and recycling
Complicating the issue of scarcity is to what extent the extracted metal or mineral is actually
consumed. With modern technology (and the increased value of the raw material) we are able
to recover commodities that have already been used.
This recycling is of increasing importance in the supply/demand balance of many metals.
Mined metals and minerals (excluding oil and gas) have an annual value of some US$350 billion,
split, roughly equally, between coal, metals and aggregates/industrial minerals.

12. Earth's phosphorus reserves are expected to be completely depleted in 50–100 years and peak
phosphorus to be reached in approximately 2030. Whereas in stark contrast the International
Fertilizer Development Center in a 2010 report estimates that global phosphate rock resources
will last for several hundred years. The predominant source of phosphorus comes in the form of
Phosphate rock and in the past guano of bird species.
10.Vision for the future
The one says up, the other says down
Caterpillar Plans
Global mining capital expenditures will drop 14 percent through 2014 from a peak of $136
billion this year, JPMorgan Chase & Co. said in a Sept. 21 report. BHP Billiton Ltd., the world’s
biggest mining company, last month delayed an estimated $68 billion of projects. Australian
iron-ore producer Fortescue Metals Group Ltd. on Sept. 4 cut its full-year spending forecast by
26 percent to $4.6 billion.
Chinese excavator sales have fallen 36 percent this year, according to JPMorgan. Caterpillar said
last month it shut its main Chinese excavator plant for much of July. The company said Sept. 21
that it’s planning to temporarily idle a component plant in Illinois for a week, around
Thanksgiving and a week around Christmas.
GE Plans
That contrasts with General Electric Co., which announced yesterday at MINExpo the creation of
a new mining unit. The division is preparing to buy more mining-equipment and services
companies and should reach $5 billion in sales “within a few years,” said Lorenzo Simonelli, CEO
of GE Transportation, of which the business will be part.
Oberhelman also said Caterpillar expects to be the “market share leader” in China by 2015 at
the latest.
The Caterpillar CEO’s comments on growth echo those of Michael Sutherlin, CEO of Milwaukee-
based Joy Global Inc (Joy), the biggest manufacturer of underground mining machinery. Central-
bank actions in China and the U.S. are removing some uncertainty from financial markets and
have provided more stability, Sutherlin said in a Sept. 18 telephone interview.
I see huge potential in markets. Strategy will have a say in the outcome but life is not an
accurate science and mining is as inaccurate in assessment of the truth of the outcome as any
roulette table can produce. The sciences have surely made the risk smaller and the investor
definitely have a better chance than twenty years ago to catch a yearly dividend. As we are
unable to predict the formations of ducts or declining crust structures, or water ducts and
aquifer behavior, we can never tell what will happen on a mine. I’m sure all these elements

13. which take charge of the outcome, just make mining interesting and investors naturally accept
this. We have to educate the various parties who wish to be party to this strategy so that the
applicant of investment doesn’t decline into a defense position, if things do not work out as
planned. The contingencies need to be detailed and packaged in much better form so that
outcome based assessments can be secured.
My outlook is very positive and taking into account the stock situations of commodities like
steel, should not deter us from taking the next step into mining. We have to generate
enthusiastic behavior and not succumb to the composition in markets, of despair and loss. The
main lever to overcome the decline in markets is to create new avenues of pursuit.
11.Labor availability and restrictions

14. Global employment trends 2012 tabled in Geneva
http://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/@publ/documents/publicati
on/wcms_171571.pdf
Global growth has decelerated rapidly, increasing the threat of a prolonged jobs recession.
Following the deepest global recession since the end of the Second World War, the recovery has
been short lived and shallow, barely recovering to rates prior to the crisis and unable to close
the gap that has opened up. In the meantime, the macroeconomic woes in some advanced
economies have worsened, increasing global uncertainty. While only a few countries have been
facing serious and long-term economic and fiscal challenges, the global economy has cooled
down fast as uncertainty has spread beyond the advanced economies, moving the world
economy even further away from the “pre-crisis” trend path. At the current juncture, even a
double dip remains a distinct possibility.
We can see that there will be a global over supply of labor. At the same time there are
inequalities in salaries of top management and wages of poverty driven workers. This will put
huge pressure on wage demands as we can see in places like South Africa in last three months.
The economy of the RSA has been very stable for the last hundred years but global inequality
and the Islamic wave of extremist behavior, is having the same affect that we saw from Wall
Street Strikes.
Some countries have been able to circumvent the currency meltdowns predicted, but suffered
dearly in the crisis to defend its monetary stability. This is an ongoing process and Inflationary
command structures in the economy of countries, battle to default on stable debt ratios.
12.Responsible mining with the background of water ethics: Environment
The mines in our not so distant past have a seriously complicated record of the destruction in
environmental outlook. There was no governance and the money traveling from manufacturer
to purse, did nothing to revamp the destructive nature of mining. The earth elements suffered
dear consequences and the proverbial blood score, oozing from the ecological wounds, are
more visible today than ever beforew, years after miners left the scenes.
We must admit that poverty in mining regions made people hungry for money and when you
are hungry you should never go shopping. The Governments where these mines were situated
were so eager to get a few dollars into the state coffers that they accepted rather than
prescribed legislation governing environmental issues. Today we are looking at a learning curve
and different picture of disbursed appetites. Mines all over the world are being told to get their
houses in order or brave the consequences of social action.

15. There is now pressure building up from small nations in Africa where taxes have seen
improvement from 5% to 30%. The trend has been set for profit but the legislation for
environmental control is still lacking. I expect this topic to be broadened in the river of obstacles
in mine revenues and dividend payouts.
Everybody in the mining sector and those investors who sponsor them will have to take into
account the fact that good governance in housekeeping of their environment will soften the
divide between the activists claiming rape and the investors’ mandate.
Within the next ten years every mine will have to submit, within their projected operations, the
obligatory Environmental Impact Studies/Assessments and provide their own legislation of
Environmental Management plans, complying with International social pressures.
A comment in the press of Bolivia recently
The Coordinator of the Environment, Mining and Industry Foundation (MEDMIN),
Félix Carrillo, explained to the press recently that the worst environmental impacts
are actually not the widespread use of mercury but deforestation caused by gold
mining in the Amazon. Where before miners had only been able to afford panning
for gold in rivers, many now bring in heavy machinery and destroy large areas of
jungle, altering the course of the rivers in search for gold.
Carrillo said that of the over 600 gold mining cooperatives in Bolivia, 570 use
mercury and dump it into nearby rivers and soils. Carrilles said that since mercury
is heavier than water, it sinks to the bottom of rivers where it mixes with plants
and fish, and thus arrives in humans. Carrilles said that it’s possible to substitute
other chemicals and processes for mercury, but nobody wants to pay this added
expense. Carrilles said that because gold mining camps are often so far removed
from society that virtually no legal control exists over their operations. He
explained that satellite photos can show how quickly gold mining is deforesting not
just Bolivia’s Amazonian region but Peru and Brazil as well. Carrilles also explained
that most of this gold is never taxed or calculated by the government, but rather
leaves Bolivia on the black market.

16. 13.Trade Wars
These could benefit or destroy the outlook of some investors. China's emergence as a major
player in Africa is fueling an intense debate over the nature and motive of its involvement. China
National Gold's bid for Tanzania's largest gold mine adds kindling to this fire
In August, the state-owned China National Gold Corporation announced a $3.9 billion bid to
acquire African Barrick Gold, Tanzania's largest gold miner -- a wholly owned subsidiary of
Canada's Barrick Gold Corp (ABX). If approved by regulators in Tanzania as well as in London,
where African Barrick Gold is traded, it will become China's first gold mine outside its borders
and will double China National Gold's total production capacity.
China seems to have the Midas touch in Africa, steadily turning vast natural resource wealth into
gold through investments in oil, gas, and mineral projects around the continent. Last year,
Chinese interests invested nearly $16 billion in African mining projects -- a tenfold increase from
2010 -- according to the China Mining Association. China likes to stockpile and such inventories
as iron and steel exceeded one hundred million tons in the harbors of China for this year ending
2012. This alone has a non static effect on the markets in general.
How will this sit with Countries like Canada the US and Australia who are traditionally heavily
involved in the Africa mining regions? There is no answer, cash and capital determine the buyer
of the day and Governments are unable to stop the advancement of Countries like China, from
buying their recourses cheap. The next big bombshell will come in thirty years when the
countryside’s are owned by foreign powers and when the labor content is harvested for the
people of China. China has delivered a message; it is doing the Colonial thing that Europe did
when they got out of their baby boots, except they are deploying friendly capital as their
intruding tool and not warring capital like the CIA of the time. Who will stop this wave of power
and demand which could take ten to twenty years to saturate? Many, but nobody is willing to
power up this vehicle.
14.Structures of Investment
The concept has been challenged in the difference between emerging markets and first world
economies. The type investor we encounter in the first world is commonly known as Hedge
Funds and these funds are mostly generated by Pension funds and other base players who have
huge deposits which makes it difficult to invest small portions. Developing Nations are either
bouncing their capital ball into the playing field, like China and India does, or they rely on larger
developed countries to secure funding. There are many types of funds, even from big banks like
JP Morgan, Bank of America, Bonds, etc. Administering these funds become so cumbersome
that the fund managers decided to split their risks by finding administrators which we could call
Investment Bankers, Venture Capitalists, Angels, etc. to manage smaller sections of the pools of

17. funds. There are many of these pools and they expect a reasonable return on Capital of between
two and four percent growth after tax. The fund managers who then manage funds sometimes
take exorbitant interest, but increase their risks. In the field of investment we know that they
proportionate their package to have elements of small risk for smaller returns and bigger risk for
much better returns. Because they take the risk the difference in income is for their own pocket.
There are also wealthy people who manage to do solitary investments but they are few and they
prefer to either speculate the Forex markets or buy into big corporations where they find
stability, like Sony, Samsung, JP Morgan, Sacks or Nike, etc. In the last Decade the success of
these investment bankers have deteriorated significantly. News about disastrous decline in
pricing, like Facebook with JP Morgan, scaled the position in market security to a serious
negative gradient.
This global banking pool has now reached the stage where they are between the rock and the
hard place. On the one hand they have billions to invest, on the other; they are finding it more
difficult to find profit bearing environments. It is therefore a very good time to find a serious
investor who will look to invest at par plus two percent, rather than having the money in a fund
where it is not working at all. The Pension funds can only keep their fund managing profiles
stable if they have income on their capital. They will take risks in this climate and are now in
favor of smaller interest income or ROI.
A negative issue which I found in the industry is the packaging of the applications for funding.
The packaging is poor because the applicants are almost never adequately trained to do it. They
are forever short on cash because they manage their spread incorrectly. Their default
administration skills are never up to scratch but at the time they are finding the need for a
partner or investors; they seldom wish to pay for the services of a skilled professional like
myself. The packaging of the application and the prescription actuated due diligence always
have short comings, because there are very few properly trained incumbent advisers in the field.
15.Summative Assessment
There is no doubt that the mining industry has challenges. There is also no doubt that these
challenges can be overcome. To find a harmonious alignment of the spindle which effectively
incurs the auguring affect in the centrifuge of Capex structures we have to find balance of the
incurring elemental device. Politics, religious extremity, inequality in suspension, focused view
of state and equitable social activities/responsibilities are the bases for fluid motion in the
equilibrium of the bearing in mining and other industry.
There are many mining opportunities Globally and there is an oversupply of mining contractors,
mine managers, Geophysicists, Geologists, Accountants, etc, worldwide. If we can bring the
needs analysis of the applicant to the level of professional delivery in question, we will surface
with a product possibility that investment bankers and applicants who needs capital exchange,
can lever their profit under an umbrella of sustainability.

18. Heinrich Scheffer