After years of budget cuts and intensive exploration of existing mines, global mining giants have once again begun searching for new ore deposits. Industry analysts say that... 2017 Annual exploration spending will see its first increase in five years.

    When commodity prices plummet, exploration spending comes under pressure, and investors are urging miners not to overspend—especially on large-scale new projects and untested regions.

    According to S&P Global Market Intelligence the data, last year's expenditure was higher than 2012 At the peak of the year 215 The amount has shrunk by two-thirds, to hundreds of millions of dollars.

    However, mining companies say the situation is changing, as supply concerns are returning, market prices are rebounding, and trading in high-grade, low-risk minerals—among the major commodities—remains elusive.

    S&P expects that this year, more funds will be directed toward low-risk countries such as the United States, Canada, and Australia—countries with lower operational risks and advanced technology.

    The focus is on commodities such as copper, which could face supply shortages, as well as technologies that enable mining companies to detect more ore with fewer personnel and in a faster manner.

    “ During the quiet phase of the cycle, we typically focus more on non- OECD Country, ” Rio Tinto (RIO.AX) (RIO.L) Head of Growth and Innovation Department Stephen McIntosh states, “ But for now, we’re still focusing on... OECD especially in the Americas, and primarily targeting copper. OECD The Organisation for Economic Co-operation and Development.

    Rio Tinto plans to spend on exploration this year. 1.8 hundred million -2 hundred million dollars, BHP (BLT.L) (BHP.AX) After four consecutive years of cuts, exploration spending will increase by roughly one-third, with the aim of discovering more proven reserves of oil and copper.

    “ We’re looking for copper, zinc, and nickel. We’re not opposed to mergers and acquisitions— it’s just that the mines there don’t have the minerals we’re seeking. ” China Minmetals Resources (1208.HK) Executive Director Andrew Michelmore Said. “ That leaves us with only one option: to carry out exploration. ”

    Overall, 2016 In the third quarter of the year, exploration spending in Australia alone decreased from the first quarter's... 8,710 A$10,000 has risen to 1.138 hundred million Australian dollars (8,620 Ten thousand US dollars ) Australia ranks second globally in exploration spending, trailing only Canada.

According to the Australian Mining and Exploration Companies Association (Australian Association of Mining and Exploration Companies) Last year, new drilling activities in the third quarter increased compared to the second quarter. 75% New well drilling is an important indicator for measuring exploration activities. ( Finished )

Further reading:

Senior Advisor to the China Mining Association Liu Yikang, Member of the Expert Committee of Mining Industry Magazine

Mineral exploration investment lags behind gold prices. 1-2 Year  2017 The exploration market will rebound this year.

  “Mineral exploration is an industry characterized by cyclical ups and downs. Its fluctuations generally mirror those of the mining industry itself, though with a slight lag,” Liu Yikang believes. He notes that the fluctuations in precious metal prices—especially gold—are most closely aligned with those in the commercial mineral exploration market.

    Take gold as an example—the last century... 70 At the end of the decade, gold prices had once surged to... 803 U.S. dollar / The high point of the ounce triggered a global exploration boom. At that time, domestic exploration was closed off and entirely governed by a planned economy, leaving people unable to perceive market signals.

    At the beginning of this century, gold prices entered... 20 Reaching its lowest point in years, the mineral exploration industry also entered a cold winter. Geological survey teams found themselves in dire straits, with large numbers of workers laid off and struggling to find ways to make a living. Subsequently, gold prices soared, and coupled with favorable policy factors, the mining sector began to recover, and mineral exploration quickly ushered in a spring-like revival. 2011 Year 9 Moon 6 The day the gold price reached 1920.8 U.S. dollar / The peak of the ounce. Meanwhile, the geological exploration market is also booming.

Subsequently, consecutively 4 After more than a year of declining gold prices, the geological exploration industry has once again entered a chilly “winter,” and some geological survey teams have even found themselves facing a survival crisis once again.

And in contrast 1997 Year ~2015 Looking at global investment in solid mineral exploration over the years, we can see that the peaks and troughs in exploration spending lag behind those in gold prices by roughly one year. Liu Yikang explains this phenomenon as “a kind of market inertia.” For example, the peak in gold prices occurs... 2011 year, and 2012 Global exploration investment continues to rise, reaching... 2013 The market only realized it later, followed by consecutive... 3 It experienced a significant year-on-year decline. Similarly, the recovery in exploration investment also has a lag period.

2016 This year, the mineral market has shown signs of price recovery, with significant increases in both mineral prices and gold prices. He pointed out... Since the exploration market, compared to the mineral products market, has approximately... 1 The inertia lag of the year. 2016 This year, global mineral exploration investment will continue to decline, reaching... 2017 Next year, it will likely rebound.

Source: Reuters Chinese Website