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Gavin C. Dirom is president and chief executive officer of the Association for Mineral Exploration British Columbia.
Although most metal prices remain at or near 10-year averages, over the last two years there has been a major downturn in the venture capital market. With virtually no access to venture capital, the strength, resiliency and experience of the industry were put to the test, and not surprisingly, the resilient mineral exploration and development industry rose to the challenge in 2013.
For many mineral explorers, particularly the junior companies, last year was about building strategic partnerships, entering into joint venture agreements, raising private equity and successfully exploring — not just here in B.C. — but around the world.
There was an estimated 29 per cent drop in global exploration spending for the year 2013. And the majority of respondents to a fall Association for Mineral Exploration British Columbia survey reported a decline in their exploration spending. But the industry is well acquainted with the cyclical nature of the business, and many AME BC members have been taking this opportunity to prepare for the next upswing in the markets.
While most have made changes to their exploration programs and reduced spending for the short term, it rarely dampens their optimism for the future. Because of this optimistic spirit, combined with experience, creative thinking and a determined mindset, many advanced projects in B.C. were able to make significant progress last year.
Internationally, B.C. is increasingly seen as a safe haven for investment in mineral exploration compared to other jurisdictions because of its mineral development potential, supportive government, infrastructure and improvements in permitting. It’s estimated that B.C. attracted nearly 20 per cent of the exploration spending in Canada in 2013, compared to just six per cent in 2001.
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