HomeBase MetalsMining companies are boosting exploration budgets

Mining companies are boosting exploration budgets

The MEG says
exploration budgets
are being boosted
across the globe
Halifax, Canada — MININGREVIEW.COM — 03 December 2010 – A rise in metal prices and more stable market conditions have prompted mining companies across the globe to boost their exploration budgets by more than 40% in 2010, according to a report issued by the Metals Economics Group “’ a leading worldwide minerals information and consulting company based in Canada.

The report, based on input from more than 3 200 mining companies, estimates that the total of 2010 budgets for nonferrous metals exploration has reached US$12.1billion (R91 billion).

After rising for six straight years to a record high of US$14.4billion (R98 billion) in 2008, nonferrous exploration budgets collapsed in 2009 to slightly above US$8billion (R56 billion) as the global economic meltdown and declining metal prices hurt the industry.

Metals prices “’ the primary driver of exploration spending “’ have since improved markedly and metals have traded well above the long-term trend-line throughout 2010, leading to a rebound in spending, the MEG report said.

The report notes, however, that the mining industry’s appetite for risk has not returned to levels seen before the economic downturn, as mining companies continue to face the threat of increased royalties, resource nationalism and windfall-profit taxes in many jurisdictions.

“Exploration in a number of countries considered to be higher risk continued to fall in 2010,” the MEG report said. It includes input from companies that mine base metals, precious metals, diamonds, uranium and a few other industrial minerals.