The experience of the last ten years has forced the capital market to give priority to investments that are structured in such a way as to maintain their viability under a wide range of operating conditions. Critical attention is given to the long term price trend, the markets available for products, production rates, government intervention, potential for industrial disruption, the proximity to the technology frontier of key aspects of the development, the project model and the degree of confidence that can be attached to expectations concerning these critical factors. A major element of equity — in the sense of ability to absorb losses — is an essential part of the financial structure of any development project in Australia. This equity participation may range from direct participation in residual ownership of the project through the various forms of royalty or revenue sharing arrangements to long term off-take agreements. The debt element can be increased if satisfactory security can be arranged. The tougher the security requirements, however, the lower the flexibility of the equity participants. In structuring the debt element the critical decisions involve the mix between fixed and floating rate components plus the currency composition of the financing. Bankers and others concerned with the financing of capital projects are constantly seeking financial structures which will satisfy the requirements of the various parties involved. Thus there will be considerable development of the concepts of debt and equity in coming years. Government authorities, capital market participants and explorer/developers will have to liaise closely to ensure that beneficial advances are not choked off by excessive conservatism.