FACTS ‘N’ FIGURES — Exploration spending on rise

Exploration expenditures for nonferrous metals have increased for the fourth year in a row, according to a study released by Metals Economics Group (MEG).

The mining research firm reports that total worldwide exploration expenditures for 1997 stand at $5.1 billion, an increase of 11% over the $4.6 billion estimated to have been spent in 1996. The study was based on the exploration programs of 279 companies, as well as estimates from private companies.

Latin America once again attracted more exploration dollars than any other region — $1.2 billion, to be precise, or 29% of the world total.

Australia ranked second, with $673.4 million (16.7%), followed by: Africa, with $662.6 million (16.5%); the Pacific-Southeast Asia region, with $440.4 million (10.9%); Canada, with $435.9 million (10.8%); and the U.S., with $364.6 million (9.1%). Spending in the rest of the world, including Europe, the Middle East, the Commonwealth of Independent States (CIS) and Asia, was estimated at $282.9 million (7%).

As a result of new mining laws in many African countries, that region recorded the largest increase in spending in 1997. Budget allocations for Africa rose to $662.6 million from $418.3 million in 1996, an increase of $244.3 million. Africa’s share of overall spending rose to 16.5% from 11.9% in 1996.

Spending in Latin America increased for the fourth consecutive year. In 1997, expenditures there increased by $207.1 million to $1.2 billion, up from $963.2 in 1996. Exploration spending in Latin America accounted for 29% of the worldwide total in 1997, up from 27.3% in 1996.

Increases in other regions were modest in 1997. Budget allocations for the Pacific-Southeast Asia region rose by $25.8 million to $440.4 million, up from $414.6 million in 1996. That region’s total percentage of spending slid, however, to 10.9% from 11.8% in 1996.

Exploration spending in Europe, the CIS, the Middle East and Asia rose $24.4 million to $282.9 million, up from $258.5 million in 1996. Those regions maintained a 7% share of the world’s total spending.

Exploration spending in the U.S. rose by $21.8 million to $364.6 million, up from $342.8 million in 1996, slipping to 9.1% from 9.7%.

Spending in Australia held steady, rising by $7.5 million to $673.4, up from $665.9 million in 1996. Australia’s share of total spending dropped to 16.7% from 18.9%.

Canada is the only region in which spending decreased in 1997, with a $24.9-million drop to $435.9 million, down from $460.8 million in 1996.

Canada’s share of world exploration expenditure dropped to 10.8% from 13.1%.

— The preceding is an excerpt from a release by Halifax, N.S.-based Metals Economics Group.