Page 3 - Why we need a New Mineral Exploration Policy for National Mineral Security?
P. 3
Discussion Paper
the changing needs of industry in the context of the The pattern and size of global budgets for exploration
domestic and global economic environment. has a close relationship with commodity trends in the
various metals, and is also a pointer to future uptrends
Table 1 provides an overview of the current since it takes several years for exploration investments
comparative exploration allocations across the globe to yield tangible results and still more time for it to
according to S&P Global Market Intelligence Data. As translate into mineral production. Currently, the largest
a pattern it reflects both the country’s prospectivity for proportion of exploration spends are in gold, diamonds,
minerals as well as the attractiveness of the country’s and base metals. Given its geological make-up, India
mineral laws for inviting investments. While Canada and is highly prospective for all three, and as such the low
Australia have been leaders in exploration for a long proportion of global exploration investment coming
time, the emergence of Latin American countries, as to India cannot be said to be due to the low geological
hubs of exploration, is directly related to the reforms potential or low mineral prospectivity.
they have undertaken post 2000 to promote exploration
through ease of grant of concessions and stability and Exploration as part of the larger strategy of
predictability of their mineral laws which are translating mineral development
into higher returns on investment.
As laid out in the National Mineral Policy, the strategy
Table 1: Country share in global exploration budget 2017 for development of any mineral should naturally keep in
view its ultimate end uses in terms of demand and supply
Country Percentage share in the global in the short, medium, and long term. Considerations
exploration budget of “inter-generational equity” should be addressed
“positively” through exploration to further enhance
Canada 14 % the current potential resources rather than thorough
abstinence from consumption or preservation for use
Australia 13% in the distant future. Given its geological evolution, the
fact that India is highly prospective for minerals must
United States 7% be leveraged through the discovery of new mineral
resources on a continuous basis through the latest
Mexico 6% technologies. Historical evidence in advanced mining
jurisdictions shows that in the case of common minerals
Peru 6% of widespread use, such as iron ore and limestone,
exploration more than replaces the stock of resources
Chile 6% consumed through mining. A case in point is Australia
whose iron ore resources have increased a hundred
Other Latin America 6% fold in 40 years through a process of increased
exploration and beneficiation, as cited in the Hoda
Brazil 4% Committee Report 2006.
Europe 5% As the National Mineral Policy rightly says,
conservation of minerals should be viewed as a positive
West Africa 5% concept leading to the augmentation of the reserve base
through improvement in mining methods, beneficiation,
East Africa 2% and utilization of low-grade ore and rejects the recovery
of associated minerals. Over time, the grades may go
DR Congo 2% down and extraction costs may rise as accessibility
becomes more expensive, but since the process
South Africa 4% occurs in a globally networked context, preserving
high grades for the future and denying oneself access
Russia 5% to resources that are critical for current growth may
China 6%
Pacific/South East Asia 5%
Former Soviet Union (FSU) 1%
Others 3%
Worldwide Mining Exploration Trends 2017, S&P Market Intelligence Data
JUNE 2017 3
the changing needs of industry in the context of the The pattern and size of global budgets for exploration
domestic and global economic environment. has a close relationship with commodity trends in the
various metals, and is also a pointer to future uptrends
Table 1 provides an overview of the current since it takes several years for exploration investments
comparative exploration allocations across the globe to yield tangible results and still more time for it to
according to S&P Global Market Intelligence Data. As translate into mineral production. Currently, the largest
a pattern it reflects both the country’s prospectivity for proportion of exploration spends are in gold, diamonds,
minerals as well as the attractiveness of the country’s and base metals. Given its geological make-up, India
mineral laws for inviting investments. While Canada and is highly prospective for all three, and as such the low
Australia have been leaders in exploration for a long proportion of global exploration investment coming
time, the emergence of Latin American countries, as to India cannot be said to be due to the low geological
hubs of exploration, is directly related to the reforms potential or low mineral prospectivity.
they have undertaken post 2000 to promote exploration
through ease of grant of concessions and stability and Exploration as part of the larger strategy of
predictability of their mineral laws which are translating mineral development
into higher returns on investment.
As laid out in the National Mineral Policy, the strategy
Table 1: Country share in global exploration budget 2017 for development of any mineral should naturally keep in
view its ultimate end uses in terms of demand and supply
Country Percentage share in the global in the short, medium, and long term. Considerations
exploration budget of “inter-generational equity” should be addressed
“positively” through exploration to further enhance
Canada 14 % the current potential resources rather than thorough
abstinence from consumption or preservation for use
Australia 13% in the distant future. Given its geological evolution, the
fact that India is highly prospective for minerals must
United States 7% be leveraged through the discovery of new mineral
resources on a continuous basis through the latest
Mexico 6% technologies. Historical evidence in advanced mining
jurisdictions shows that in the case of common minerals
Peru 6% of widespread use, such as iron ore and limestone,
exploration more than replaces the stock of resources
Chile 6% consumed through mining. A case in point is Australia
whose iron ore resources have increased a hundred
Other Latin America 6% fold in 40 years through a process of increased
exploration and beneficiation, as cited in the Hoda
Brazil 4% Committee Report 2006.
Europe 5% As the National Mineral Policy rightly says,
conservation of minerals should be viewed as a positive
West Africa 5% concept leading to the augmentation of the reserve base
through improvement in mining methods, beneficiation,
East Africa 2% and utilization of low-grade ore and rejects the recovery
of associated minerals. Over time, the grades may go
DR Congo 2% down and extraction costs may rise as accessibility
becomes more expensive, but since the process
South Africa 4% occurs in a globally networked context, preserving
high grades for the future and denying oneself access
Russia 5% to resources that are critical for current growth may
China 6%
Pacific/South East Asia 5%
Former Soviet Union (FSU) 1%
Others 3%
Worldwide Mining Exploration Trends 2017, S&P Market Intelligence Data
JUNE 2017 3
