Companies with exploration budgets topping US$50 million are contributing 40 percent of the global mineral exploration during 2014, according to a recent report published by SNL Metals & Mining. The global research firm says these 39 larger players have budgeted US$4.33 billion of the US$10.74 billion mineral exploration worldwide.
The top three explorers in 2014 include Antofagasta, a Chile-based copper producer; Vale, a Brazilian multinational diversified metals and mining company; and Fresnillo, major precious metal producer focused on gold and silver projects in Mexico.
Gold was the most sought-after metal in 2014, representing 41 percent of global exploration spending. At 32 percent, copper was the second most sought-after metal – base metals as whole accounted for 41 percent. Diamonds were the target of another 7 percent of exploration spending.
Two of the larger players, Alrosa and De Beers, account for 69 percent of worldwide diamond exploration. The 25 larger players with gold exploration budgets are responsible for 39 percent of worldwide gold allocations. The group’s copper explorers account for just over half the total copper budget.
One of the bigger surprises from the SNL Metals & Mining report is that these 39 largest players are contributing 40 percent of all greenfields exploration in 2014.
A persistent financing drought has squeezed juniors’ budgeting to the point that the majors have become the biggest drivers of early-stage exploration. On the other hand, the 39 larger players in 2014 mineral exploration account for only 51 percent of the near-mine work as their investors demand improved returns over growth. SNL Metals & Mining also found it interesting that the larger players are responsible for just 32 percent of late-stage exploration and feasibility work.
Bigger spenders accounting for larger portions of global exploration budgets ate also shifting where these exploration dollars are being spent.
For the 39 larger players, Chile replaces Canada as the primary exploration destination, as their Chilean budgets account for 12 percent of global spending, reflecting the significant presence of major copper miners in the relatively secure Latin American country.
Canada garnered 10 percent of the exploration by the larger players, the United States was the target of 8.4 percent and Australia accounted for 7.5 percent of the exploration spending by these 39 companies.
