Mining in Africa - Exploration

Exploration

Exploration activity, as defined by African exploration budgets reported by the MEG, increased to $807 million in 2005 from $572 million in 2004. Africa’s share of the world exploration budget increased slightly to 16.5% in 2005 from 16.1% in 2004. In 2005, the principal mineral targets in Africa were copper, diamond, gold, and platinum group metals (PGM).

African countries that experienced the highest levels of exploration activity in 2005 were, in descending order based on the number of exploration sites as compiled by the USGS, South Africa, Burkina Faso, Ghana, and Zambia, but activity took place in a number of other countries. Gold accounted for approximately 51% of reported African exploration projects, diamond accounted for about 14%, copper and PGM each accounted for about 11%, and nickel accounted for 5%. Early stage projects accounted for about 77% of the 2005 activity, and feasibility stage projects accounted for about 12%.

Australian and Canadian junior companies continued to invest time and money to explore Africa. South African companies continued to expend a sizable amount of their exploration resources outside of South Africa.