A COMPANY PERSPECTIVE ON DOING BUSINESS IN THE FORMER SOVIET-UNION - A MINING VENTURE IN KAZAKHSTAN

BHP Minerals recently applied for and received a License to conduct ex ploration and mining of gold covering an area of in excess of 2.5 mill ion acres in Kazakstan, The license required that BHP negotiate an agr eement with the Government, The agreement had to clarify the condition s for conducting operations, augment existing laws and regulations, an d address fiscal and other terms which mould impact the commerical via bility of any potential discovery. This paper reviews the complex acqu isition and negotiation process from the perspective of a foreign inve stor conducting exploration activites in emerging countries which are moving from a command economy to a market driven economy. (C) 1997 Els evier Science Ltd. All rights reserved.