Page 4 - Why we need a New Mineral Exploration Policy for National Mineral Security?
P. 4
Discussion Paper
be counterproductive, particularly at moments when survey of countries globally to analyse their investment
growth momentum needs to be built up to a level where attractiveness and policy environment. The survey looks
it can become self-sustaining. at various policy areas, such as mineral administration,
enforcement of regulations, environmental regulations,
Global exploration trends legal and taxation regime, land, infrastructure,
socioeconomic issues, political and security concerns,
With vast resources lying unexplored, survey and trade issues, etc., for analysis. India has been ranked 88
exploration is the first step towards developing in the Policy Perception Index, 94 in the Best Practices
domestically available minerals for internal utilization Mineral Potential Index, and 97 amongst 104 jurisdictions
in infrastructure, capital goods, and basic industries. for Investment Attractiveness Index which is a composite
Globally, economies with a large mining base or potential index that combines both the Policy Perception Index
resources have projected significant spends (public and and results from the Best Practices Mineral Potential
private) for exploration; however, Indian exploration Index (see box).
budgets are still limited. It also needs to be noted that while
the global investments in exploration have been rising in Fraser Annual Mining Survey 2016
many countries, particularly after a reform process, a
similar trend is not visible in the Indian subcontinent. The Fraser Institute is a Canadian think tank that publishes the
A study on the Corporate Exploration Strategies (CES) Annual Mining Survey and other publications on exploration and
of global companies by S&P Global Market Intelligence mining every year. The Fraser Annual Mining Survey of 2016 covered
for the year 2016 highlights that the 20 companies with 104 mining jurisdictions (States/Provinces or Countries) across the
the largest non-ferrous exploration budgets in 2016 globe and ranks their mineral potential and mineral policy framework.
accounted for 31% of the global exploration of around The survey highlights where each jurisdiction stands in overall
$7 billion. The report also highlights that the top 10 investment attractiveness.
companies accounted for $1 out of every $5 that was
being spent on exploration globally. Copper, gold, and The top jurisdiction in the world for investment based on the
diamonds accounted for 88% of the total exploration Investment Attractiveness Index for 2016 is Saskatchewan (Canada)
budgets of the top 10 companies (see Figure 2). and Manitoba (Canada) moved up to the second place this year after
ranking 19th in the previous year. Western Australia was third and
the others were Nevada (USA), Finland, Quebec (Canada), Arizona
(USA), Sweden, the Republic of Ireland, and Queensland (Australia).
The Argentinian province of Jujuy ranks as the least-attractive
jurisdiction in the world for investment. Also in the bottom 10 are 4
other Argentinean provinces as well as Venezuela, Afghanistan, India,
Zimbabwe, and Mozambique.
The emerging scenario clearly implies a major challenge
for enhancing investment in mineral exploration and
also highlights an urgent need to undertake major
transformation in the mineral sector from both policy as
well as implementation-related perspectives.
Figure 2: Percentage share of various minerals in global National Mineral Policy 2008: Changes to the
budgets of the top 10 exploration companies enabling environment
International exploration budgets are allocated based One of the main reasons why the National Mineral
on the attractiveness of destinations. According to Policy 2008 (NMP 2008) replaced the National Mineral
Fraser Institute Annual Survey of Mining Companies Policy of 1993 was because it had failed, inter alia, to
2016, Asia has the least attractive policy environment bring in the expected investments in exploration. The
in the world. The Fraser Annual Survey undertakes a announcement of NMP 2008 led to a large number of
legislative as well as non-legislative actions for sector
reform and reorienting of priorities. Of these, the
restructuring of the Geological Survey of India (GSI)
4 JUNE 2017
be counterproductive, particularly at moments when survey of countries globally to analyse their investment
growth momentum needs to be built up to a level where attractiveness and policy environment. The survey looks
it can become self-sustaining. at various policy areas, such as mineral administration,
enforcement of regulations, environmental regulations,
Global exploration trends legal and taxation regime, land, infrastructure,
socioeconomic issues, political and security concerns,
With vast resources lying unexplored, survey and trade issues, etc., for analysis. India has been ranked 88
exploration is the first step towards developing in the Policy Perception Index, 94 in the Best Practices
domestically available minerals for internal utilization Mineral Potential Index, and 97 amongst 104 jurisdictions
in infrastructure, capital goods, and basic industries. for Investment Attractiveness Index which is a composite
Globally, economies with a large mining base or potential index that combines both the Policy Perception Index
resources have projected significant spends (public and and results from the Best Practices Mineral Potential
private) for exploration; however, Indian exploration Index (see box).
budgets are still limited. It also needs to be noted that while
the global investments in exploration have been rising in Fraser Annual Mining Survey 2016
many countries, particularly after a reform process, a
similar trend is not visible in the Indian subcontinent. The Fraser Institute is a Canadian think tank that publishes the
A study on the Corporate Exploration Strategies (CES) Annual Mining Survey and other publications on exploration and
of global companies by S&P Global Market Intelligence mining every year. The Fraser Annual Mining Survey of 2016 covered
for the year 2016 highlights that the 20 companies with 104 mining jurisdictions (States/Provinces or Countries) across the
the largest non-ferrous exploration budgets in 2016 globe and ranks their mineral potential and mineral policy framework.
accounted for 31% of the global exploration of around The survey highlights where each jurisdiction stands in overall
$7 billion. The report also highlights that the top 10 investment attractiveness.
companies accounted for $1 out of every $5 that was
being spent on exploration globally. Copper, gold, and The top jurisdiction in the world for investment based on the
diamonds accounted for 88% of the total exploration Investment Attractiveness Index for 2016 is Saskatchewan (Canada)
budgets of the top 10 companies (see Figure 2). and Manitoba (Canada) moved up to the second place this year after
ranking 19th in the previous year. Western Australia was third and
the others were Nevada (USA), Finland, Quebec (Canada), Arizona
(USA), Sweden, the Republic of Ireland, and Queensland (Australia).
The Argentinian province of Jujuy ranks as the least-attractive
jurisdiction in the world for investment. Also in the bottom 10 are 4
other Argentinean provinces as well as Venezuela, Afghanistan, India,
Zimbabwe, and Mozambique.
The emerging scenario clearly implies a major challenge
for enhancing investment in mineral exploration and
also highlights an urgent need to undertake major
transformation in the mineral sector from both policy as
well as implementation-related perspectives.
Figure 2: Percentage share of various minerals in global National Mineral Policy 2008: Changes to the
budgets of the top 10 exploration companies enabling environment
International exploration budgets are allocated based One of the main reasons why the National Mineral
on the attractiveness of destinations. According to Policy 2008 (NMP 2008) replaced the National Mineral
Fraser Institute Annual Survey of Mining Companies Policy of 1993 was because it had failed, inter alia, to
2016, Asia has the least attractive policy environment bring in the expected investments in exploration. The
in the world. The Fraser Annual Survey undertakes a announcement of NMP 2008 led to a large number of
legislative as well as non-legislative actions for sector
reform and reorienting of priorities. Of these, the
restructuring of the Geological Survey of India (GSI)
4 JUNE 2017
