The Project Financing Industry is currently being expanded en- compassing greater competition due to the improved worldwide
economy. This has meant that money is in greater supply than
demand for both loan and equity investment and is available for
larger and higher risk ventures. The consequence of this is that
the Project Financing Industry should be better able to provide
more innovative forms of financing to meet the needs of mining
and petroleum companies, regardless of size. Large mining and
petroleum companies in Papua New Guinea should therefore be
looking for ways to raise equity funds for exploration in greenfield
areas, diversifying their risks through acquisition, and seeking to
reduce their costs of borrowings. The small to medium sized
mining sector should be looking to raise equity for increased ex- ploration on tenements and, where possible, to raise borrowings
to fund expansion and further development of their projects. In
summary, it is a period during which companies should take ad- vantage of available funding to augment their strategic plans and
increase their long term returns to shareholders.