A Looming Crisis for the Mineral Exploration Industry: A Geological Perspective

Data on discovery and resource inventories for metals indicate that the discovery rates in the mineral industry are declining and discovery costs are rising steeply (Richard Schodde, www.minexconsulting.com/publications.html). These factors, plus a bear market for exploration stocks with consequential lack of access to fi nance, create a looming crisis for mineral exploration. There are several interrelated exploration issues that have led to this. Two key, geologically oriented factors are discussed here: an ineffi cient industry structure and the education of its exploration geologists. Several other factors have been discussed in previous Views articles.1 Although we have a largely Australian perspective, we believe that our generalizations identify key issues worldwide, and that there are improvements that can be made in the next upswing of the mineral exploration “boom and bust” cycle. INEFFICIENT NATURE OF THE MINERAL EXPLORATION INDUSTRY