Mining exploration spending on the rise

In 2008, mining companies spent P246 million in exploration, and while the figures were originally projected to rise to P257 million by end of 2009, the global recession eroded exploration budgets as miners tightened their belts. The mines department is able to gauge exploration activities through quarterly and annual budgets, development programmes and exploration reports carried out by prospective licence holders.

Although budgeted and actual spending for 2010 will only become known next year, senior department officials have noted increased exploration activity across the hundreds of prospecting licences in issue. Leading the activities is exploration in minerals such as coal, coal bed methane and uranium, all energy minerals whose developers are eyeing the regional shortfall in electricity.