Canada tops global list in exploration spending

Despite the malaise spreading throughout Canada’s metals exploration industry, this country remains the leader in terms of exploration spending, says Halifax-based The Metals Economics Group Strategic Report in the November/December, 1991, issue.

A survey of 153 companies with a total exploration budget of $1.8 billion shows that 23.3% ($430 million) of the budget was directed toward projects in Canada in 1991. Australia attracted $353 million, while $341 million was spent in the U.S.

Spending “elsewhere” in the world accounted for $722 million (39.1%) of the total expenditures, including $245 million for South Africa, $200 million for Latin America and $125 million for the South Pacific.

The group’s survey, which is limited to nonferrous mining companies with annual exploration budgets of at least $1 million, covered an estimated 80% of worldwide spending on nonferrous metals exploration. The remaining 20% represents work done by smaller companies with budgets of less than $1 million.

But although Canada still attracts the most spending, the report points out expenditures in this country have dropped dramatically since 1987 and 1988, when more than $1 billion was directed toward exploration each year. Overall, spending by the surveyed companies declined by $160 million (8%) from 1990 to 1991.

Although gold remained the favorite commodity last year, attracting 56% of the total budget, the survey indicates that base metal exploration is on the increase. Many of the smaller companies are joining the base metal search and several major companies have increased their budgets for copper, nickel, zinc and lead exploration. Placer Dome (TSE), for instance, spent 40% of its budget on base metals last year, compared with 6% in 1989.

As a result, base metal exploration expenditures increased to 31% of the total budget in 1991.