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OCR for page 66
Appendix F LETTER TO G.A. BARBER LISTING BANKS WITH INTERESTS IN FOREIGN MINERALS July 25, 1983 Mr. G.A. Barber Anaconda Minerals Company Box 5300 Denver, CO 80217 Dear Art: Responding, finally to your request for comments concerning the National Academy of Sciences Committee on United States awareness of international geological developments, I would start by saying that the so-called "money center banks" that have their own professional staffs keep fairly well up to date on international developments because so many of the new mining projects now under way are located overseas. Tabulated below is a fairly complete list of the major, and minor, U.S. Banks which have organized minerals investment appraisal groups: Majors Bank of America Bankers Trust Chase Manhattan Chemical Citibank Continental Illinois First Chicago Manufacturers Hanover Morgan Others Colorado National Cracker First Bank of Minneapolis First City of Houston First Dallas Irving Trust Marine Midland Bank of New York Northwestern National Security Pacific In addition, several international banks, such as National Westminister -. ~ ~ ~ ~ ~ ~ and Lloyds, have U.S. based mining groups. banks are well staffed technically and only an hour away. Chemical Bank has approximately 145 people in its Energy and Minerals Group. It is difficult to compare the size of our effort with others because many other banks are not organized on industry lines. Many use geographical or other organizational criteria and the absolute The Canadian 66

OCR for page 66
67 numbers are difficult to estimate. Consultants are routinely used by all Banks and in certain types of asset based lending outside consultants reports make up an integral part of the documentation. In a similar vein, foreign sources are commonly used as technical sources. Chemical Bank, for instance, has Energy and Mineral people in Houston, Denver, Calgary, London, Paris, Singapore, Hong Kong, and Sydney, in addition to New York. With this network of offices we can effectively gather foreign source information. The tremendous use in capital costs for natural resource projects has necessitated a corresponding rise in the degree of study of the various aspects of the project. Once the basics are understood, then the project review can take place. Basically, this process focuses on the net present value of the cash flow and the ability of the project to provide that cash flow. Your final question regarding the World Bank is too far out of my world for me to give you anything meaningful. I hope these comments are helpful and don't hesitate to call if you need clarification. Best regards. Sincerely, William L. Cameron