Trends in minerals exploration activity

Metals Economics Group (MEG) conducted an annual survey of corporate exploration expenditures, which revealed that the estimated total spending increased to a record $13.2 billion in 2008, compared to $5.2 billion in 1997. The inflation rate for exploration exceeded in general price levels as measured by national indices. Australia, Canada, and the US accounted for 39 percent of MEG's estimate of total spending on minerals exploration in 2007 and 40 percent in 2008. Australian and Canadian data revealed that total exploration spending per meter drilled increased by 2.5 to 3 times between 2001 and 2008, reflecting increasingly complex drilling methods, and an increased share of assaying and testing in total exploration costs. Diamond drilling in Canada accounted for a lower share of the total in 2005-07, while spending on exploration made up a higher proportion of the total.