JOINT VENTURES
Slump turns jittery miners into wallflowers looking to share risk
Swashbuckling gamblers abound in the mining business, where billions are spent searching for mother lodes in some of the most inhospitable places on the planet. But a prolonged slump in metals and big losses on earlier solo projects are turning top mineral producers into risk-averse wallflowers. "The mining industry has lost its nerve," said Mark Bristow, the CEO of Randgold Resources, a London-listed producer of gold in Africa. "The new fad is joint ventures. It’s very strange if you’re a major miner. They should be comfortable in their ability." At a time when prices are recovering — helping to make new projects viable again — metals producers including Anglo American, BHP Billiton and Rio Tinto are seeking partners to share investment risks rather than going it alone as they used to. While the more cautious approach is a result of the near-death experience of the 2015 commodity crash, it could limit shareholders’ payoffs during a metals rally. The shift to more conservative finan...
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