Metals Economics Group
P.O. Box 2206
Halifax, Nova Scotia B3J 3C4
CANADA
Phone: (902) 429-2880
Fax: (902) 429-6593
meg@meginformation.com
www.metalseconomics.com
Metals Economics Group's 1996 edition of Corporate Exploration Strategies A Worldwide Analysis , worldwide allocations for commercial precious shows a major increase in nonferrous exploration spending for the third year in a row. This year's study reports on the exploration programs at 223 companies representing $3.52 billion in corporate exploration expenditures (approximately 76% of worldwide expenditures), up from the $2.69 billion detailed for 154 companies in the 1995 edition.
MEG estimates total 1996 worldwide nonferrous exploration expenditures at about $4.6 billion, up about 30% from the total $3.55 billion estimated for 1995. This total figure includes estimates for budgets that MEG was not able to obtain, exploration spending by private companies that do not publish their figures, and exploration by junior companies that are each spending less than $3 million on their exploration programs in 1996.
The vast majority of companies included in the study shows an increase in exploration spending over 1995. The great number of well-funded junior companies has played a major role in spending increases this year, so much so that MEG added a new section in this year's study to summarize the activities of 77 juniors that are spending between $2.9 and $4.9 million in 1996.
The graph below shows the regional distribution of 1996 exploration spending reported by the 223 nonferrous companies surveyed, including expenditures for precious, base, and other hard rock minerals, as well as any industrial minerals.
| 1996 Worldwide Exploration Spending by Location | |
| (223 Companies' Budgets Totaling $3.52 Billion) | |
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Latin America is the top region in the world for exploration spending ($963 million) for the third year in a row, garnering 27.3% of the total expenditure for all companies in the study, up $179 million (23%) from the $785 million allocated in 1995. Australia is in second place for the fourth year running at $666 million, followed by Canada at $461 million, Africa at $418 million, the Pacific/Southeast Asia region at $415 million , and the United States at $343 million. Spending in the rest of the world, including Europe, C.I.S., the Middle East, and Asia, is a combined $259 million.
Australia has maintained its second place standing again this year, with a $137 million jump in spending, up by about 26% from the $529 million allocated in 1995. Canada is in third place again this year; allocations for Canadian exploration by surveyed companies increased by $132 million (40%) from the $329 million apportioned in 1995.
The Pacific/Southeast Asia region shows the second largest increase in allocations, rising by $157 million (61%) from $257 million in 1995. Africa's allocations increased by $98 million (31%) from $320 million in 1995. The United States has fallen from fifth place last year to sixth place, with the smallest gain in spending, only a $49 million (17%) increase from $294 million in 1995.
The fourteen largest corporate exploration budgets in 1996, with spending ranging from $280 million to $52 million, include (in decreasing order) RTZ-CRA, BHP Minerals, Barrick Gold, Echo Bay, WMC, Placer Dome, Newmont, Minorco, De Beers, Phelps Dodge, Newcrest, Gencor, Freeport-McMoRan, and the Anglo American group. Together, these companies account for $1.34 billion, or about 38% of the exploration spending by the companies surveyed.
These are some of the conclusions drawn from Metals Economics Group's recent seventh edition of Corporate Exploration Strategies: A Worldwide Analysis, published in September 1996.
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