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Africa|Aggregate|Exploration|Mining
Africa|Aggregate|Exploration|Mining
africa|aggregate|exploration|mining

Global exploration budget seen increasing in 2022

21st October 2021

By: Creamer Media Reporter

     

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The mining exploration sector has emerged strongly from the downturn caused by the Covid-19 pandemic, with the aggregate global nonferrous exploration budget having increased by 35% year-on-year to $11.2-billion.

This is according to S&P Global Market Intelligence principal metals and mining analyst Kevin Murphy, who explains that a faster-than-expected recovery in market conditions and easing of lockdowns allowed explorers to reactive programmes by mid-2020, which caused some programmes to carry over into 2021.

“Along with higher metal prices and increased financing activities, this has led to a strong budget recovery in 2021,” he says.

S&P Global Market Intelligence is forecasting a budget increase of between 5% and 15% year-on-year for 2022. This means the exploration budget could be up to $12.8-billion next year – a level last seen in 2013.

While junior exploration budgets surged 62% year-on-year to $4.1-billion, majors continue to drive exploration, accounting for half of the global exploration budget at a total of $5.6-billion.

In 2020, grassroots share of allocations hit an all-time low of 24%, while minesite hit an all-time high of 41%, as the pandemic made some large-scale programmes more difficult. S&P states that while grassroots’ share recovered this year, owing to increased activity in Australia and Canada, its global budget share is the second lowest on record at 26%.

Overall, Canada has attracted a particularly big share of the global exploration budget in 2021, with an increase of $800.5-million year-on-year to $2.1-billion, hitting its record high since 2012.

Africa, however, underperformed with allocations of just 12% to $1.1-billion, returning the region to its 2019 level.

Edited by Creamer Media Reporter

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