Life in the mining sector – not so good

The estimated spending on non-ferrous exploration mining worldwide plummeted 42% in 2009 compared to 2008. Previously, spending in this industry  sector — not including uranium — had risen for six straight years.

According to Metals Economics Group’s 20th edition of Corporate Exploration Strategies, “The global economic crisis and declining prices for almost all mineral commodities took their toll on the industry.” The drop represents the largest year-on-year decline in global exploration budgets since Metals Economic Group began their study in 1989.

The 2009 spending on non-ferrous exploration was $7.7 billion, compared to $13.2 billion in 2008. The bulk of the decline was attributed to junior companies who rely on equity financing.