The Anatomy of a Mine - Mining and the Environment: From Ore to Metal - page 172

FIGURE 4.5
Worldwide Exploration Spending by
Region as Percentage of Worldwide
Exploration

REGION 2001 2005

Latin America 29 23

Canada 17 19

While Canada, Australia, and the USA
remain the countries of preferred
exploration investment, a large number
of mining companies from these
countries are increasingly exploring
outside - in over 100 countries.
Source:
Metals Economic Group 2006 and World Bank
2006

Africa 14 16

Australia 17 13

United States 8 8

Southeast Asia 6 4

Rest of World 9 17

Total 100 100

Rest of World Exploration

17

15

13

11

9

7

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

eventually coni rm the presence of a concealed mineral deposit, and to outline its extent
and grade. All other techniques are merely indicative.
Where is most of the exploration money spent? The Metals Economic Group identii ed the
10 countries that accounted for roughly 70 per cent of the total US$ 4.9 billion global exploration
investment in 2005 ( Figure 4.5 ). Not surprisingly the traditional big three - Canada, Australia,
and the United States - head the list, with Canada hosting 19 per cent of the total global explo-
ration budget, Australia 13 per cent and the United States 8 per cent. Russia moved to fourth in
the 2005 ranking, up from ninth in 2003 and i fteenth in 2001. In 2006, China accounted for a
meager 2 per cent, a rel ection, perhaps, of its Byzantine matrix of bureaucratic controls. Given
China's vast area, much of which remains unexplored, future intensive search for resources
there is inevitable, and China will attract a much higher share of the exploration dollar.
China serves as a prime example of the understanding that to attract mining invest-
ment, a favourable investment climate is as important as favourable geological conditions.
Almost half of worldwide exploration spending in 2005 was attributed to gold, 30 per cent
to base metals, 13 per cent to diamonds and 3 per cent to platinum-group metals.
There is uncertainty regarding the current state of mining in major producing regions
such as China and India and it is likely that investments in these areas are not fully cap-
tured by existing surveys (World Bank 2006). Given their production bases and land
masses, this group's share of long-term investment is likely to be larger than implied in

To attract mining investment,
a favourable investment climate
is as important as favourable
geological conditions.