Miners to spend $21 billion on exploration by 2025

March 30, 2017 Cecilia Jamasmie Geologists sampling rocks in the iron ore-rich Pilbara region, Australia. (Image courtesy of Adwo | Shutterstock.) An undeniable and ongoing rebound in commodity prices could take global mining spending in exploration up to as much as $21 billion by 2025, a level of funding last seen in 2012 according to S&P Global Market Intelligence, but which is necessary to sustain the industry’s growth. While prognosticating that far into the future can inevitably lead to inaccuracies, Stan Wholley, President for the Americas at CSA Global — the world’s second-largest mining sector consultancy — said that such a hefty investment is essential. Gold, by far, is the commodity leading the uptick in exploration spending, followed by graphite, zinc and lithium. “As deposits get harder and more expensive to find and after such an extended period of inactivity in the exploration space, I believe we need to be back at the levels seen in 2012 to replace resources and reserves required to sustain growth,” he told MINING.com. Gold, by far, is the commodity leading the uptick in exploration spending, he says. The relatively stable and reasonably high current price has allowed producers to secure good margins again, Wholley notes, adding that many are beginning to use that surplus not only in exploration, but also in acquisitions. One of the most recent examples is Goldcorp’s (TSX:G) (NYSE:GG) spending spree unveiled this week. The world’s No.3 producer of the precious metal by value not only is allocating more than $700 … Continue reading