Nonfuel Mineral Exploration 2003
David R. Wilburn
U.S. Geological Survey
(Originally published in Mining Engineering, v. 56, no. 5, May 2004, p. 25-37.)
The worldwide budget for nonfuel mineral exploration was expected to increase by 27 percent in 2003 from the 2002 budget, according to the Metals Economics Group (MEG) of Halifax, Nova Scotia.  The increase comes after 5 years of declining spending for mineral exploration.  For the first time in several years, all regional exploration budget estimates for 2003 as defined by MEG would increase from similar 2002 estimates.  However, MEG included 193 more companies in their 2003 survey than they did in 2002.  As with previous MEG survey reports, estimates reflect anticipated expenditures rather than actual dollars spent.  Caution, therefore, must be taken when comparing 2002 and 2003 estimates or evaluating the magnitude of regional changes from year to year.  Although sample variations and currency exchange rates may influence year-to-year variations of MEG data, it is likely that the general climate of improved metal prices in 2003 encouraged companies that had previously left the mineral exploration sector or reduced their exploration activity to once again focus on minerals exploration or increase exploration activity and budgets.
For the fourth consecutive year, the worldwide budget for gold exploration in 2003 remained below 50 percent of the budget total, but was 34.5 percent higher than the reported 2002 budget reported by MEG.  The 2003 worldwide exploration budget estimates for diamond increased by 36 percent to US$320 million from the 2002 budget of about US$234 million.  The 2003 exploration budget for nickel increased 29 percent and the budget for platinum-group metal exploration increased 26 percent from 2002 levels.
Based on the MEG reported exploration budget summaries and Engineering & Mining Journal’s annual project investment survey, the top three geographic areas for exploration in 2003, in decreasing budget order, were in Latin America, Canada, and Africa.  MEG “regions” reflect a mixture of individual countries, continents, and other groupings, but they are reported consistently on an annual basis and provide a means of indicating the flow of budgeted exploration expenditures from year to year.  Regional allocations based on data from companies canvassed by MEG for 2003 were: Latin America, US$518 million; Canada, US$471 million; Africa, US$374 million; Australia, US$339 million; the United States, US$153 million; the Pacific region, US$93 million; and the rest of the world, US$244 million.  Figure 1 shows the worldwide exploration budgets planned for 2003 by region, based on MEG data.
This summary of international nonfuel mineral exploration activities for 2003 draws upon available data from literature and industry and U.S. Geological Survey (USGS) specialists.  This report provides data on exploration budgets by region and commodity, identifies significant mineral discoveries and exploration target areas, discusses government programs affecting the mineral exploration industry, and presents inferences and analysis of the mineral industry’s direction based upon these data.
Two types of information are reported and analyzed in this annual review of international exploration for 2003: 1) budgetary statistics provided by MEG and 2) information on regional and site-specific exploration activities in 2003 compiled by the USGS.  The MEG information summarizes planned company budgets for exploration activities in 2003 worldwide, primarily for precious and base metals.  MEG includes information on additional mineral commodities where it is available.  MEG estimates that their post-1999 surveys cover 90 percent of world nonfuel mineral exploration budgets.  The MEG survey statistics were changed in 1999 to include companies with exploration budgets between US$100,000 and US$2.9 million, as well as those companies included in prior studies whose anticipated budgets were above US$2.9 million.  The 2003 survey did not include budget estimates for those companies who chose not to participate in the MEG study, for private companies that do not publish figures, and not for government-funded exploration activities.
USGS site compilations described here include nonfuel minerals, with an emphasis on precious metals (gold, platinum-group metals, and silver) and base metals (copper, lead, nickel, and zinc) and diamond.  Mineral exploration generally focuses on commodities that are more sensitive to supply disruption (platinum-group metals, tin) or have a high value per unit weight (gold).  Analyses are based on information provided by USGS mineral commodity and country specialists, and by other USGS scientists, as well as industry contacts and trade journals.
Care should be taken when performing temporal interpretations of the MEG exploration data, such as trend analyses, because the sample of mining companies surveyed by MEG varies with time, companies included in the survey change on a year-to-year basis, and fluctuation of currency exchange rates affect the relative value of budget estimates from year to year.  Post-1999 data reported in this summary differ from prior-year data in that a larger number of companies were included in the more recent survey results.  The significant amount of corporate restructuring that occurred during the period 1997–2002 also affected statistical compilations.
Statistical Interpretation of International Mineral Exploration for 2003
MEG estimated the total 2003 commercial international exploration budget for nonfuel mineral commodities (excluding iron ore and aluminum) to be US$2.4 billion.  For the 917 companies canvassed by MEG in their 2003 study, the total amount reported as budgeted for international exploration in 2003 was US$2.19 billion (48 percent for gold, 27 percent for base metals, 14 percent for diamond, 6 percent for platinum-group metals, and 5 percent for other mineral commodities).
MEG data indicate that planned exploration budgets (in current dollars) for 2003 increased from 2002 levels in all regions of the world.  The general increasing trend may be attributed to changing exchange rates, rising commodity prices, low metal inventories in an improving global economy, and greater company budgets.  The largest percentage increases in exploration budgets over the previous year took place in Canada (49 percent) and Africa (46 percent).  Canadian exploration activity was aided by increased investment in junior companies, who generally were able to raise exploration funds in the search for diamond, gold, and platinum-group-metal targets.  To some extent in 2003, it appears that the risk associated with social or political conflicts present in some regions of Africa and the high levels of malaria and AIDS that have discouraged or delayed exploration in the past was outweighed by the potential for the discovery of significant mineral deposits in Africa.  Growth in budgeted exploration (9 percent) was slowest in the Pacific region.  The Australian exploration budget was forecast to increase by a modest 11 percent and Latin American budgeted exploration was forecast to increase 16 percent, as reported by MEG.  Figure 2 shows trends in reported exploration budgets for nonfuel mineral commodities in selected regions for the period 1995–2003, in terms of regional dollar allocations and in regional percentage of the total exploration budget.
In terms of dollars budgeted for exploration, the largest regional budget increase between 2002 and 2003 took place in Canada (with an increase of US$154 million), followed by a US$117 million increase in budgeted exploration in Africa.  In terms of percentage of worldwide exploration budget, Canada increased its share of the total worldwide exploration budget from about 18 percent in 2002 to over 21 percent in 2003, and the Latin American budget percentage dropped slightly from about 26 percent in 2002 to about 24 percent in 2003.  The Australian budget share decreased from about 18 percent of the worldwide budget in 2002 to about 15 percent in 2003.  In spite of a market share decrease, Latin America remained the region with the highest exploration budget.
The data shift seen in figure 2 for 1999 reflects in part the change in MEG data reporting methodology previously mentioned.  The 538 companies included for the first time in the 1999 MEG study, while individually budgeting between US$100,000 and US$2.9 million in annual exploration, together accounted for about US$91 million in budgeted exploration, or 18 percent of the total exploration budget.  Post-1999 MEG studies are estimated to account for approximately 90 percent of the worldwide mineral exploration budget.
Metals prices in 2003 generally were higher than in 2002.  The average nickel price was significantly higher in 2003 than in 2002, whereas average copper, gold, and platinum prices were somewhat higher.  Lead and zinc prices held at 2002 levels, and the average palladium price dropped dramatically in 2003.  The rapid growth in Chinese mineral consumption has, in part, contributed to the rise in some mineral prices.  Table 1 shows the change in price of selected metals for the years 1995–2003.
Table 1.   Prices for selected metals, 1995–2003	
	Average price for specified year, in U.S. currency	
Commodity	19951	19961	19971	19981	19992	20002	20012	20022	20033	
Copper4	1.38	1.09	1.07	0.79	0.76	0.88	0.77	0.76	0.85	
Gold5	386	389	332	295	280	280	272	311	365	
Lead6	0.42	0.49	0.46	0.45	0.44	0.44	0.44	0.44	0.44	
Nickel7	3.73	3.40	3.14	2.10	2.73	3.92	2.70	3.07	4.29	
Palladium8	153	130	184	290	363	692	611	340	291	
Platinum9	425	398	397	375	379	549	533	543	590	
Silver10	5.15	5.19	4.89	5.54	5.25	5.00	4.39	4.62	4.66	
Zinc11	0.53	0.51	0.65	0.51	0.54	0.56	0.44	0.39	0.39	
1USGS Metal Prices in the United States Through 1998, published in August 1999; Platt’s Metal Week quotations.	
2Price reported in USGS Mineral Commodity Summaries 2004; Handy and Harmon quotations.	
3Price based on oral and written communication, USGS mineral commodity specialists.	
4U.S. producer cathode (99.99%-pure copper), in Platts Metals Week, dollars per pound.	
5Englehard Corp., published in Platts Metals Week, dollars per troy ounce.	
6North American producer price, delivered (minimum 99.97% pure), in Platts Metals Week, dollars per pound.	
7London Metal Exchange cash price for primary nickel (minimum 99.80% pure), in Platts Metals Week, dollars per pound.	
8New York price (99.9% pure in 100-ounce lots), dollars per troy ounce, Handy and Harmon quotations.	
9New York price (99.9% pure in 50-ounce lots), dollars per troy ounce, Handy and Harmon quotations.	
10New York price (99.9% pure silver), dollars per troy ounce, Handy and Harmon quotations.	
11North American Dealers Special High Grade zinc (99.99% pure) delivered price, dollars per pound, Platts Metals Week quotations.	
Figure 3 illustrates the distribution of reported mineral exploration budget estimates for 2003 by commodity grouping.  Gold continued to draw the largest amount of the total exploration budget, representing over 48 percent of budgeted exploration funding in 2003.  The amount budgeted for gold exploration (US$1,054 million) was 34.5 percent higher in nominal terms than that budgeted for gold in 2002.  The gold budget for grassroots projects was projected to increase 64.8 percent from the 2002 level, a trend attributed to an increase in capital to junior explorers and the acknowledgement by several major companies that there was a shortage of gold projects suitable for quick development.  The gold price continued to strengthen in 2003 as a result of global geopolitical uncertainty and a weaker U.S. dollar.  Based on MEG budget estimates, in descending order, the top three geographic areas for gold exploration in 2003 were Latin America, Australia, and Canada (Metals Economics Group, 2003b).
Exploration budgets for base-metal projects increased from US$512 million in 2002 to US$585 million in 2003.  For the second consecutive year, base metals decreased as a percentage of the total world exploration budget, dropping from 39 percent of the total MEG world exploration budget in 2001 to about 26 percent in 2003.  While most base metal prices rose slightly during 2003, only nickel achieved a significantly higher average price, increasing from $3.07 in 2002 to $4.29 per pound in 2003.  The last time nickel achieved an average annual price higher than $4 per pound occurred in 1989.  Copper exploration constituted about 58 percent of the base-metals exploration budget; nickel increased to about 29 percent, and zinc decreased to less than 13 percent of the base-metal total.  As with gold, Latin America remained the region with the greatest minerals exploration budget for base metals.  The Canadian base metals budget increased significantly from about US$90 million in 2002 to about US$120 million in 2003.   The 2003 base metals budget was about the same as 2002 in Africa, Australia, the United States, and in the rest of the world category.
Diamond exploration budgets in 2003 increased to US$320 million from about $234 million in 2002, and accounted for 14.6 percent of the total exploration budget in 2003.  Much of this increase was in Canada, where diamond exploration was expected to increase 66 percent from the 2002 level, and Africa, where the diamond exploration budget was expected to increase 44 percent from the 2002 level.  These two regions accounted for about 76 percent of the total diamond exploration budget.
Exploration budgets for other mineral commodities (primarily borates, heavy minerals, magnesium, platinum-group metals, and tantalum) were expected to reach their highest level of the past seven years, or almost 11 percent of the total world budget.  Platinum-group metals accounted for nearly 56 percent of the US$235 million total.  Silver was considered by many companies to be a significant exploration target, however, most silver exploration occurred in conjunction with gold or base metal exploration because silver is frequently found in association with other metals.  Budgeted exploration for other minerals was expected to have increased in Africa, Canada, and Latin America in 2003.
Interpretation of Domestic Mineral Exploration in 2003
The U.S. mineral exploration budget for 2003 was projected to increase modestly at a level comparable to the worldwide average, based on reported MEG statistics.  Budgeted exploration expenditures increased to US$153.4 million (7 percent of world total) in 2003 from the budgeted amount of US$125.2 million (7.2 percent of world total) in 2002.  Much of this increase is a result of an anticipated increase in U.S. gold exploration budgets, which are expected to increase from about US$77.2 million in 2002 to US$113.6 in 2003.  The U.S. exploration budget for base metals was projected to be about US$29 million, close to the 2002 level.  Exploration budgets for other U.S. minerals dropped to about US$10.1 million in 2003 from the US$18.6 million reported by MEG for 2002.  The U.S. 2003 exploration budget is about 42 percent of the level it was in 1997, when the worldwide budget reportedly peaked at about US$5.2 billion, based upon MEG data.  USGS data suggest that Alaska and Nevada had the greatest amount of exploration activity within the U.S. during the year 2003, primarily for gold.
Although U.S. minerals exploration activity has generally declined since the mid-1990s, there are indications of increasing optimism for the industry.  In 2003, the greatest factor influencing increased activity was the increase in the price of gold.  Because gold accounts for about 74 percent of all U.S. mineral exploration, its price greatly influences U.S. exploration activity.  Higher mineral commodity prices may make it easier for companies to finance exploration activities and may allow for the development of more minerals projects. Other positive factors are identified by a recent survey of Nevada exploration activity conducted by the Nevada Division of Minerals (Driesner and Coyner, 2003).  In this report, mineral exploration expenditures in Nevada are reported to have increased from $51.2 million in 2001 to $64.6 million in 2002, with a projection of $69.4 million in 2003.  A similar trend is reported for the number of geologists employed in the mining sector of Nevada.  In 2001, 107 geologists were employed; in 2002, 128 geologists were employed; and 140 geologists are expected to be employed in Nevada in 2003 (Driesner and Coyner, 2003).  The number of mining claims held in Nevada and the rest of the United States has generally dropped since the enactment of the $100 Federal claim maintenance fee in 1992, but has increased since 2001.  According to the Nevada Division of Minerals survey, respondents reported holding about 38,000 claims in Nevada in 2001, and 49,000 claims in 2002, and projected that they will hold about 51,000 claims in 2003.  By mid-2003, exploration activity had been reported in 63 of the 526 mining districts in Nevada, up from 55 in 2002 and 42 in 2001 (Driesner and Coyner, 2003).
The three greatest factors influencing exploration activity in Nevada in the 2002 survey by the Nevada Division of Minerals were (1) existence of favorable geology, (2) commodity prices, and (3) announcements of new discoveries (Driesner and Coyner, 2003).  Expansion of resource estimates associated with the Marigold gold mine of Glamis Gold Ltd. (increasing resources to 2.2 million troy ounces of Au) and discovery of the 4.5-million-troy-ounce Cortex Hills gold deposit by Place Dome Inc. represent two of the major projects providing incentives for gold exploration in Nevada in 2003.  Other factors that affect the level of U.S. mineral exploration include: the annual $100 Federal claim maintenance fee enacted in 1992; the increased emphasis on environmental protection of national resources; the relative maturity of U.S. exploration (except for Alaska); and the depth of drilling (expense) that may be required to locate new zones of mineralization.  More stringent permitting standards also have added to the cost of exploration.
About 65 percent of the respondents to the 2002 Nevada Division of Minerals survey were optimistic about domestic exploration.  This percentage is higher than all previous surveys since 1994.  In spite of this optimistic outlook for domestic mineral exploration, there is concern by some that changes in Federal Surface Mining Regulations (43 CFR § 3809) that went into effect in 2001 will limit access to Federally-owned lands for mineral exploration and mine development (Dobra, 2003).  Although these regulations do not affect exploration activities directly, they create uncertainties over whether a mine could be developed within a reasonable time if an economic ore body were discovered.  Consequently, these regulations may increase the incentive for companies to explore outside of the United States or on private property.  Since only a small portion of Nevada gold mineralization is found on private property, any regulation that appears to impede mine development serves to focus exploration elsewhere.
In spite of the general trend of declining domestic exploration since the mid-1990s, a recent survey of 132 junior exploration companies and 27 senior exploration companies conducted by the Fraser Institute of Canada suggests that the United States continues to attract interest in minerals exploration.  Exploration interest varies substantially based on location and State regulatory policies (Fredricksen, 2003).  In the Fraser Institute 2003/2004 survey, Nevada was the top-rated region for its policy climate, and California, Washington, and Wisconsin were among the 5 lowest rated regions in this category.  Nevada was included in the five top-rated regions for attractiveness based on geology, while California, Washington, and Wyoming were among the lowest rated in this category.  In general, Nevada was given a positive rating for its regulation/land-use policy climate, while California, Colorado, Idaho, Minnesota, Montana, South Dakota, Washington, and Wisconsin were rated low in these areas.  Anticipated exploration budgets allocated for the United States in 1999 dropped from about 15 percent of the total world exploration budget of senior mining companies to about 5 percent of the total budget in 2002.  For junior mining companies, the percentage allocated for U.S. exploration dropped from about 15 percent of the world budget in 1999 to about 9 percent in 2002.  The Fraser Institute survey reports that 53 percent of the respondents decreased their U.S. exploration budget between 1998 and 2002, while 26 percent of the respondents increased their exploration budget during this same period.
Analysis of Exploration Activity
The worldwide exploration budget during the last decade peaked in 1997, when over 63 percent of the total worldwide exploration budget was to be spent in generally less mature exploration provinces in Africa, Asia, Europe, Latin America, the Pacific, and the former Soviet Union.  Since, 1997, however, exploration in these areas has decreased in favor of generally more mature areas which have undergone intensive past exploration, such as Australia, Canada, and the United States.  In 2003, 56 percent of the worldwide exploration budget was allocated for less mature areas while 44 percent of the total budget was allocated for more mature regions.  This trend is shown in figure 4 in terms of percentage of reported exploration budgets.  Low or variable commodity prices, regional unrest, financial turmoil, and industry consolidation all tend to focus investor interest on areas with established mineral potential and away from areas with more perceived potential risk.  As mineral prices rise, mineral investors may be more likely to invest in exploration or development of projects in less mature areas with greater risk, so, if prices continue to rise and the economic, political, and social climates remain stable, investment in riskier areas may increase.
For 2003, information on nearly 1900 exploration sites was gathered from USGS specialists, industry contacts, and trade journals.  The regional distribution of these exploration targets is represented in figure 5, based on the number of projects reported for each region.  When compared to similar data for 2002, exploration activity based on the number of reported exploration projects appears to have decreased in Australia, Canada, and the Pacific regions, remained about the same in Africa, Latin America, and the United States, and increased in other regions of the world, including China, other parts of Asia, and Europe.
The number of sites having exploration activity within a country or region does not always correspond to the amount budgeted for exploration.  Canada had a 49 percent increase in its exploration budgets, yet its number of exploration sites dropped by 13 percent, suggesting that a greater amount of the available exploration dollars were being focused on fewer key projects or exploration projects were ongoing on a regional level where no specific sites had yet been defined.  The situation in Australia was even more apparent; while its exploration budget increased 11 percent from 2002, the number of active exploration sites as assessed in this survey dropped 31 percent in 2003.  Apparently, exploration funding was being focused on a smaller quantity of key mineral projects or regional assessments with no precise sites identified.  On a regional basis, Canada ranks first in terms of number of sites being explored, but ranks second in terms of total dollars budgeted; Australia ranks third in terms of both number of sites being explored and total dollars budgeted.
Table 2 presents exploration sites considered most noteworthy in 2003, based on available information.  Selection was based on the following criteria:
●	The high level of exploration activity at the site, determined either by level of drilling activity or exploration investment.
●	The large amount of resources delineated.
●	The high likelihood of near-term development, based upon reported tonnage and grade estimates.
The same criteria have been applied to previous exploration summaries reported annually by Mining Engineering.  Each of these sites represents a new or recent discovery, a delineation of a new ore zone, or a significant reported increase in resources in 2003.  Sites undergoing preproduction development or currently producing were excluded from this list, unless significant reserves/resources were delineated in 2003 by exploration activity.
As shown in table 2, gold continues to dominate the list of noteworthy exploration sites for 2002.  Of the 100 selected sites reported in table 2, 72 sites are for gold, 9 sites for copper, 6 sites for nickel, 4 sites for silver, and three each for diamond, platinum-group metals, and other commodity targets.  Determination of the primary commodity was based on consideration of the value of the contained resources at each site.  Gold remained the most sought-after mineral commodity in 2003.  Interest in base metal deposits remained strong, especially for mineral deposits with polymetallic potential.  Interest in platinum-group metal deposits continued, both as a primary target commodity and in association with nickel and copper sulfides.  These data are consistent with the findings of MEG for 2003.
The estimated resources reported in table 2 reflect various stages of verification, different methodologies, and multiple sources of information.  Should these resources be verified, however, they would add over 114 million ounces (3,200 tons) of gold, 389 million ounces (11,000 tons) of silver, 39 million tons of copper, about 6 million tons of nickel, and 15 million ounces (430 tons) of platinum-group metals to the world’s identified resources for these mineral commodities. The USGS reports a 2003 world reserve base of 89,000 tons (2.8 billion ounces) of gold, 570,000 tons (17 billion ounces) of silver, 940 million tons of copper, 140 million tons of nickel, and 80,000 tons (2.5 billion ounces) of platinum-group metals (U.S. Geological Survey, 2004).
A historical summary for exploration activity in selected regions is shown in figure 6 for the period 1995–2003.  Data in figure 6 are expressed as a percentage of world activity based on the number of sites that appear in industry publications and trade journals.  While Latin America has generally maintained 25-30 percent of the world nonfuel minerals exploration budget for this period, the percent of the world actively being explored based on the number of reported sites has declined between 1997 and 2002.  In contrast, Australia has maintained a budget share in the 15-20 percent range during this period, but its share of active exploration sites has risen from less than 5 percent in 1997 to over 20 percent in 2002.  Since 1999, Canada’s percentage of the world nonfuel minerals exploration budget has increased from about 10 percent to over 20 percent in 2003, while its percentage share based on exploration sites has remained stable around 35 percent.  Table 3 shows the number of significant sites by region for 1996 to 2003.  In terms of major sites being explored, there appears to be a significant increase in noteworthy exploration projects in Canada and the United States.  The number of major sites reported in Africa, Latin America, and the Pacific region remained relatively constant, and Australia showed a significant drop in the number of major sites reported for 2003, consistent with its corresponding drop in overall exploration site activity in 2003.
Table 3.  Major exploration sites1 by region, for the years 1996–2003	
Region	1996	1997	1998	1999	2000	2001	20022	2003	
Africa	16	13	20	10	17	11	16	16	
Australia	9	8	4	11	12	21	20	10	
Canada	13	24	19	20	15	17	19	31	
Latin America3	30	26	29	27	24	17	15	19	
Pacific4	14	10	9	7	10	12	4	4	
United States	9	13	10	16	14	10	6	12	
Other5	9	6	9	9	8	12	10	8	
1Based on data developed by the USGS and appearing in table 2 of the exploration summary discussion published in the May issue of Mining Engineering for the years 1997–2003.	
2Only 90 major exploration sites met the selection criteria for 2002.	
3Including Central America, Mexico, and South America.	
4Including Southeast Asia and islands in the Pacific Ocean.	
5Including Asia, Europe, and the former Soviet Union.	
Regional Exploration Activities
The level of exploration activity in a region often reflects the impact of industry structure, metal prices, and/or significant events affecting the investment climate.  The recent trend toward industry consolidation began in 2000 with base metal companies and 2001 with gold companies.  Since 2001, there have been more than 14 major company merger/acquisitions and more than 10 mine purchases in the precious metals industry (Davidson, 2003).  Consolidation during the 2000-02 period was driven by the gold price, investor demand for companies with large market capitalization and high rates of return from existing assets, and companies seeking to replace or increase production while reducing risks in time and money for exploration (Davidson, 2003).  In 1998, the top eight gold producers controlled 66 percent of gold production and 65 percent of the market capital.  By 2002, the top nine gold companies controlled 86 percent of production and 80 percent of market capitalization (Davidson, 2003).
Corporate restructuring can affect the level of mineral exploration.  Before their 2000 merger, Newmont Mining Corp. and Normandy Mining Corp had a combined exploration budget of US$111 million; the 2002 exploration budget of the merged company was US$73 million.  Before their 2001 merger, BHP Limited and Billiton plc. had a combined exploration budget of more than US$200 million; in 2002, BHP-Billion had an exploration budget of US$136 million.  Similarly, the exploration budget for a merged Barrick-Homestake was 30 percent lower than the pre-merger exploration budgets of the two individual companies (Davidson, 2003).  Although many other factors affect the level of a company’s exploration budget, from the above examples, it appears that one of the consequences of restructuring is that costs for such activities as exploration are reduced through staff consolidation to reduce redundancy or redefine exploration targets.
Exploration-related activities and events within each region are summarized below.  The order of regional and country discussions is based on the amount budgeted for exploration in 2003 from highest to lowest.
Latin America.  Although Latin America maintained its top position as a destination for proposed exploration capital, its share of the world exploration budget dropped slightly from 25.8 percent in 2002 to 23.6 percent in 2003, based on MEG data.  By commodity, Latin America was targeted for about 24 percent of the world gold exploration budget and almost 35 percent of the exploration budget for base metals in 2003.  Brazil, Peru, Chile, Mexico, and Argentina were ranked in MEGs top 10 countries for 2003 exploration, in order of highest to lowest, based on the proposed exploration budget.  Similarly, an annual survey of executives from leading international mining companies conducted by the Fraser Institute (Fredricksen, 2003) ranked the Latin American countries of Chile (1st), Brazil (5th), Peru (6th), and Mexico (10th) in the top ten countries on its rating for overall investment attractiveness in 2003.  Investment appeal is based on the geologic potential, property value, ease of doing business, and political stability of the countries.
In 2003, about 57 percent (US$296 million) of the Latin American exploration budget was allocated for grassroots projects, 30 percent (US$157 million) for late stage projects, and 13 percent (US$64.5 million) for mine site exploration.  Latin America has attracted a higher percentage of grassroots exploration than most other regions.  The average advanced-stage Latin American gold resource estimate increased to 3.2Moz of contained gold in 2003, compared to 2.8Moz gold per deposit in 2002 and 1.6Moz gold per deposit in 2001 (Metals Economics Group, 2003c, p. 2).  Gold resource estimates that are actively being developed in Latin America are reported to have increased by 83.1Moz in 2003 over the reported 2002 resource estimates, based on new discoveries and extension of existing resource estimates.  MEG reports 29 Latin American projects that each contain a resource of more than 1 million ounces of gold.
Based on data compiled for this review, Latin American countries with the greatest exploration activity, in descending order by number of reported sites, were Mexico, Argentina, Brazil, Chile, and Peru.  Gold attracted about 66 percent of total exploration activity, but interest in base metals reached 18 percent and silver achieved about 10 percent of the total.  Investment in 2003 was primarily used to further define newly discovered resources (75 percent) and conduct feasibility studies of promising deposits (13 percent).
Investment in Argentina’s mining sector rose 36 percent to US$220 million in 2003, compared to US$162 million in 2002.  Investment in exploration in 2003 totalled US$80 million, up 33 percent from US$60 million in 2002 (Business News Americas, 2004a).  The greatest amount of investment in exploration was made in Catamarca and Santa Cruz provinces, where the country’s two largest gold mines are located.
The Brazilian company Companhia Vale do Rio Doce (CVRD) approved a US$72 million exploration budget, 80 percent of which is allocated to the search for aluminum-, copper-, gold-, iron-, and nickel-bearing deposits in Brazil.  CVRD also increased its international exploration effort in 2003 (Business News Americas, 2003).  CVRD and Antofagasta, a Chilean copper producer, formed a 3-year, US$6.7 million joint venture to participate in copper exploration activities in southern Peru.  The South African gold producer AngloGold Limited is likewise increasing its international exploration effort.  The company has budgeted US$16 million for exploration in Latin America, of which 46 percent is for Brazil, 21 percent for Peru, and 14 percent for Argentina (Lodder, 2003).
Barrick Gold Corporation’s (Barrick) discovery of the Alto Chicama gold deposit in Peru in 2002 has led to aggressive exploration in the country.  Barrick budgeted US$7.3 million in 2003 for exploration at Alto Chicama, and subsequent drilling defined a reserve of 7.2Moz of gold (Barrick Gold Corporation, 2003).
Canada.  Preliminary statistics released by the Canadian Government (Natural Resources Canada, 2003) show anticipated 2003 exploration spending at C$574 million (US$364 million), up from C$534 million (US$339 million) for 2002.  MEG reported budgeted exploration spending in Canada for 2003 at US$471 million, or over 21 percent of the overall worldwide exploration budget.  Variation in the two sets of statistics can be attributed to survey characteristics (such as date of data collection, sample size), but the magnitude of the 2003 difference is greater than what has been reported for other years.
Exploration budget allocations for 2003 as reported by the Canadian Government were greatest in Ontario (about 32 percent of Canadian total exploration budget), Quebec (21 percent), Nunavut (11 percent), Northwest Territories (9.5 percent), Saskatchewan (8 percent), and British Columbia (8 percent).  Canadian provinces with notable increases in exploration activity based on reported budget estimates included British Columbia, Nova Scotia, and Ontario.  Provinces with sizeable reduction of exploration budgets between 2002 and 2003 include Alberta, New Brunswick, Newfoundland and Labrador, and Northwest Territories.  Approximately 75 percent of the reported Canadian exploration budget was allocated for initial exploration (up to and including the first delineation of a mineral deposit).  Budgets of junior companies were expected to increase to C$236 million (US$150 million) in 2003.  Over the period 2000-03, the junior company budget share rose from 41 percent to 53 percent in Canada.  Expenditures for precious metals have increased by 34 percent over the 2001-03 period, reaching C$224 million (US$142 million) in 2003 and contributing most of the anticipated increase in total expenditures in 2003 (Natural Resources Canada, 2003).
Based on data compiled by the USGS for this study, exploration for gold accounted for approximately 53 percent of the Canadian exploration budgets reported in 2003.  The greatest amount of gold activity, based on decreasing order of active sites, took place in Ontario, British Columbia, and Quebec.  Copper exploration accounted for 11 percent and nickel exploration accounted for about 10 percent of Canadian activity, with copper exploration focused on British Columbia and Ontario, and nickel exploration focused on Ontario and Quebec.  Diamond exploration activity continued, accounting for about 16 percent of all 2003 Canadian exploration sites, mainly in Nunavut, the Northwest Territories, Quebec, and Ontario.  Approximately 91 percent of all reported exploration sites were considered early-stage sites, consistent with Government statistics, which indicate junior companies are conducting much of Canadian exploration activity.
Canadian gold exploration activity based on the number of sites in 2003 focused primarily on Nunavut, Ontario, and Quebec; diamond exploration focused on Nunavut, Quebec, and Saskatchewan.  Diamond projects such as Victor (Ontario), Snap Lake (Northwest Territories), and Gahcho Kue (Northwest Territories) entered the development phase during 2003, lowering overall exploration costs for diamond in the region from 2002.  Drilling continued to define additional nickel-copper and platinum-group metal resources at McCreedy West, Norman, and River Valley deposits (Ontario).  Drilling continued to define gold potential at Kemess North and Red Chris (British Columbia), Hope Bay and Meadowbank (Nunavut), and the Red Lake region (Ontario).  Development continued at the Voisey’s Bay nickel-copper deposit in Newfoundland.
Africa.  Exploration activity, as defined by MEG African exploration budgets, increased significantly in 2003 both in dollar and percentage terms.  MEG reported a 46 percent increase in exploration budgets from $257 million in 2002 to $374 million in 2003, or from 14.8 percent of the world exploration budget in 2002 to 17.1 percent in 2003.  More exploration expenditures were planned for Africa than for Australia in 2003.  African gold and base metals exploration expenditures were projected to increase slightly, diamond exploration expenditures were projected to increase 44 percent, but the greatest increase in African exploration expenditures were projected for other minerals, mainly platinum-group metals.  The exploration expenditures for platinum-group metals doubled from the 2002 level, increasing the African percentage of other mineral targets to 34 percent of the world’s activity.  Much of the increase can be attributed to exploration designed to support the announced expansion of the South African platinum-group-metals industry.
A recent study released by the Department of Minerals and Energy of the Republic of South Africa shows increased interest by mining companies in committing financial resources to mining projects in South Africa.  The study reports 2002 investment in newly committed mineral related projects (where funds have already been committed or are being expended) at R53 billion (US$5 billion), up 54.4 percent over the 2001 amount of R34 billion (US$3.3 billion).  Gold accounted for 31 percent of the newly committed investment, platinum 57 percent, and other minerals 12 percent.  An additional R22 billion (US$21 billion) was reported for potential mineral related projects in South Africa (feasibility level projects for which funds have not yet been committed).  Gold accounted for 23 percent of the potential mineral projects, and other minerals accounted for 77 percent (Department of Minerals and Energy, 2002).
Africa continues to represent a continent with new mineral production potential, but with a highly variable investment risk which is dependent upon location.  Exploration in some parts of Africa increased in 2003 as the threat of civil unrest in some areas eased. Civil wars, internal ethnic or political conflicts, and refugee displacements continued to destabilize some African countries and constrained new investment in mineral exploration.  Recent investment in some areas of Africa has been stifled by perceptions of long-term instability, increased incidence of HIV/AIDS, and a poor record of recent successful base metal development (Hinde, 2001), while others express optimism over African potential (Mining Magazine, 2002).
African countries experiencing the highest levels of exploration activity in 2003, in descending order by exploration activity based on the number of sites compiled for this annual review, were South Africa, Mali, Ghana, Burkina Faso, Tanzania, Botswana, and Sierra Leone.  Gold accounted for approximately 64 percent of the reported African exploration projects, platinum-group minerals accounted for over 12 percent, diamond accounted for about 10 percent, and base metals accounted for about 8 percent.  Exploration for gold was greatest in the sub-Saharan African countries of Mali and Ghana; gold exploration was also significant in Burkina Faso, South Africa, and Tanzania.
Australia.  Exploration budget allocations reported by MEG for Australia showed a small increase (11.5 percent in dollar terms) to US$339 million in 2003 from the US$304 million reported in 2002, while slipping to 15.5 percent of the world exploration budget in 2003 from 17.6 percent in 2002.   The Western Australia Department of Industry and Resources reports minerals exploration expenditures for 2002 of A$678 million (US$442 million), as compiled by the Australian Bureau of Statistics (ABS), of which exploration in Western Australia accounted for 58 percent (A$396 million) (Western Australia Department of Industry and Resources, 2003a).
The Australian Bureau of Agricultural and Resource Economics (ABARE) issued a report showing a decline in mineral exploration in Australia between 1996-97 and 2001-02 of 49 percent, bringing reported exploration to its lowest level since 1978-79 (Australian Bureau of Agricultural and Resource Economics, 2002, p. 13).  The report attributed the downturn to reduced spending for gold and base metals (accounting for 72 percent of Australian exploration expenditure in 2001-02) as a result of demand side impacts on the global business cycle, official gold sales by major banks since 1997, increased rationalization of exploration budgets by merged companies, and domestic land access restrictions.  According to the ABS, as reported by ABARE, gold accounted for 52 percent of Australia’s mineral exploration expenditure in 2002-03.  Exploration allocations for base-metal targets in Australia accounted for about 16 percent over the same period (Australian Bureau of Agricultural and Resource Economics, 2004, p. 23-24).
Comparing the periods June 2001 - June 2002 and June 2002 - June 2003, Australian mineral exploration expenditures varied significantly by mineral commodity.  The largest expansion in exploration expenditure was in the gold sector, increasing A$27.5 million (12 percent) for this period.  Gains also occurred in the base metal and silver sectors (up A$10.4 million or 17 percent) and the iron ore sector (up A$7.8 million or 42 percent).  The diamond exploration sector decreased A$12.4 million or 41 percent) for the period, other sectors remained close to 2001-02 levels (Western Australia Department of Industry and Resources, 2003b).
After Western Australia, exploration was focused Queensland, New South Wales, Northern Territory, and South Australia.  South Australia saw gains in 2002 as a result of extensive work conducted on the Prominent Hill copper/gold project and the completion of the Targeted Exploration Initiative South Australia program conducted by the Department of Primary Industries and Resources, South Australia (MineBox, 2003c).  The site data compiled by the USGS for this report also suggested these areas had the highest level of exploration activity in Australia.
United States.  The anticipated U. S. exploration budgets in 2003 were 22 percent higher than that of 2002, according to MEG data.  Exploration in the United States accounted for 7 percent of the total of the world exploration budgets in 2003.  Gold accounted for 74 percent of the total 2003 U.S. exploration budgets.
In 2003, data on 167 U.S. exploration projects were collected and reviewed by the USGS; 57 percent were located in Nevada and 17 percent were in Alaska.  Of those considered, 100 projects were not in the 2002 review, either because they represent new exploration sites, project names had changed, or because public data on 2002 activity were not available.  Many of these sites, however, have had prior exploration.  This suggests that economic conditions were such that exploration companies were reevaluating known prospects in light of improved economic conditions and higher mineral prices, new technology, or recent discoveries.  About 86 percent of the 2003 projects were targeting gold and 79 percent of the U.S. projects had not yet reached the full feasibility stage of development.
Several high profile exploration projects continue to generate interest by mineral exploration companies.  Gold and copper exploration in Alaska focused on expanding resources at Donlin Creek and Pebble.  Expansion of gold resources along the Carlin Trend in Nevada continued.  The Placer Dome, Incorporated discovery at Cortez Hills, Newmont Mining Corporation’s activity at the Emigrant and GQSL projects, and Metallic Ventures Incorporated drilling in the Goldfield/Gemfield area are several of the significant projects highlighted for 2003.  Drilling continues to expand the Cresson gold mine in Colorado.  Rio Tinto plc. is reportedly completing a US$25 million exploration program at its Resolution copper deposit in Arizona (Northern Miner, 2004b).
Pacific Region.  Based on MEG data, budget allocations for mineral exploration in the Pacific region and Southeast Asia expressed as a percentage of world exploration budget continued to decrease in 2003 to 4.2 percent, about half of the level of this region in 2000.  The MEG exploration budget allocation for 2003 was about US$93 million, up slightly in dollar terms from the 2002 level of US$85 million.  Gold budgets for the Pacific/Southeast Asia region rose slightly from US$31 million in 2002 to US$43 million in 2003, after declining steadily for several years.  Risk aversion caused largely by political instability is primarily responsible for the drop in dollar allocation for gold exploration in the region from a high of US$319 million in 1997 (Metals Economics Group, 2003a).  In spite of regional unrest, aggressive drilling programs are reported in Laos at the Sepon gold-copper deposit, in the Philippines at the Boyongan gold-copper deposit, and in Thailand at the Chatree/Prospect A gold-silver deposit.
Based upon data collected during this study, exploration activity in the Pacific region (excluding Australia and Southeast Asia) was greatest in the Philippines, mostly associated with established or developing mining areas.  Other activity also occurred in Indonesia and Papua New Guinea.  Gold targets accounted for about 80 percent of all exploration interest in the Pacific region, and base metal targets accounted for 13 percent of the reported activity in 2003.
Rest of the World.  Exploration budgets for the rest of the world (including Asia, Europe, and the countries of the former Soviet Union) increased by 24 percent in the MEG 2003 survey, and accounted for more than 11 percent of world share on a percentage basis.  Exploration in Europe and Russia accounted for 56 percent of this total.  Gold exploration accounted for 42 percent of budgeted 2003 exploration in the rest of the world, base metals exploration accounted for 28 percent, diamond exploration accounted for 18 percent, and exploration for other minerals 12 percent.  Based on data collected for this study, exploration focused on China, Turkey, Mongolia, Sweden, Romania, Russia, and India, in descending order by number of sites.
Based on the number of sites, gold exploration focused on China, Turkey, Mongolia, and Spain, with significant activity occurring in Bulgaria, Russia, and Romania.  Base metal exploration concentrated in Mongolia, Pakistan, and Sweden.  Many prior mining areas of Europe are being re-evaluated with newer geophysical methods; areas rich in base-metal sulfides are often being reevaluated for platinum-group metals.  Gold and base metal exploration in the Mediterranean region continued in Cyprus, Iran, Jordan, Oman, Saudi Arabia, Turkey, and Yemen.
A 2003 report by Gold Fields Mineral Services suggests that the investment climate in Russia is improving, based on its continued strong economic growth, a recently upgraded credit rating, and the establishment of several Russian-foreign interest joint ventures for mineral exploration and development.  Russia 2003 exploration focused on the search for gold and platinum-group metals (Northern Miner, 2003c).
Mineral exploration in China has grown since the country opened its mining sector to foreign investment during the 1990s.  China’s manufacturing base relies on raw materials, and its domestic mining industry is unable to develop fast enough to keep pace with increased mineral demand generated by its high rate of economic growth.  A total of 2,693 exploration and mining licenses were issued between January and June 2003; compared with 20 exploration licenses and 320 mining licenses in the 1998-2001 period (Mining Journal, 2003a).
Government Programs
Mineral exploration has changed dramatically over the past 20 years.  Improved technology has led to wider remote sensing capacities and real-time data collection and analysis.  Land access for exploration has increased in portions of China, Eastern Europe, and the former Soviet Union.  Revisions of mining laws, such as those related to privatization, trade alliances, regulatory reforms, foreign investment provisions, and tax relief have provided incentives for exploration.  Environmental issues, on the other hand, have increased both the cost and risks of mining in many areas.  Globalization and integration of the minerals exploration and mining industry continues to affect overall exploration budgets.  Regional strife, poor economic conditions, and political policies have limited some mineral development efforts.  Low mineral commodity prices, fears of renewed conflict, and increased risk in some areas have further reduced investment for exploration.
The World Bank has played a crucial role in the growth of the extractive mineral industries of developing countries during the latter part of the 20th century.  By means of financial and technical assistance programs, it has affected the legal and regulatory structures governing foreign investment in the energy, mining, and oil and gas sectors, and the government entities that administer them.  The World Bank released a draft Extractive Industries Review (EIR) which proposed significant changes in the way the World Bank reviews and implements these programs (Danielson, 2003).  The EIR concludes that despite efforts to improve the environmental and social performance of the extractive sectors, reform programs have led to higher than necessary environmental and social costs, and in some cases unintended negative economic, environmental, and social outcomes.  As a result, the EIR has proposed phasing out financing for coal mining projects within two years, oil projects as soon as feasible, and withholding support for any mineral-related projects using submarine tailings.  In addition, the study recommends development of a new criteria list for risk management of tailings for all mining projects, ensuring sufficient funding for mine closure, and development of human rights safeguard policies for all funded projects (Mainhardt-Gibbs, 2003).  The EIR occurs in the wake of several other studies, such as the Mining Minerals and Sustainable Development Project, which proposed changes in the way the World Bank operates in the extractive industries.
A much smaller program to aid mineral exploration in developing countries has been implemented by the State-funded Metal Mining Agency of Japan (MMAJ).  The Joint Basic Exploration Scheme in Developing Countries (JBES) had a 2003 budget of US$5 million, with plans to increase its annual budget to US$15 million by 2005.  Under JBES, base metal projects, particularly for copper, will be given priority, although all metal-targeted projects will be considered.  Project participation will be evaluated based upon the project’s partner, the project’s mineral potential, investment environment, and the economic relationship between the country involved and Japan (Mining Journal, 2003d).
Latin America.  The Argentine government is seeking to strengthen ties with potential foreign investors in the mining sector.  An agreement for the exploration and mining of precious stones has been reported between the Argentine Chamber of Marble, Stone, and Granite and the Italian Chamber of Foreign Trade.  The government has reportedly made progress updating protocols on various Argentine-Chilean mining projects and is seeking a similar agreement with Bolivia.  Meetings with the Venezuela mining ministry are ongoing (Business News Americas, 2004).  Brazil has implemented new laws to regulate the export and import of diamonds in accordance with the Kimberly Agreement (Bates, 2003).  Brazilian Law Number 7188, if approved, would redirect up to US$300 million a year from state oil profits to research and prospecting for mineral resources (Pay Dirt, 2003a).  Colombia’s Mining and Energy Ministry is developing a new consolidated structure for the agency that would oversee exploration and mining (Business News Americas, 2003b).
Canada.  Canadian exploration activity has improved as a result of a 3-year exploration investment tax credit implemented in October 2000 to stimulate mineral exploration.  Approximately C$41.1 million in flow-through minerals project financing was raised during the first six months of 2003 for Canadian exploration.  Ontario introduced a 5 percent tax credit for certain exploration expenses incurred in Ontario, and British Columbia offers a time-limited 20 percent credit (Northern Miner, 2003b).  The government of Quebec passed a law offering a 60 percent tax credit until 2007 on all expenses incurred in mineral exploration (Mining Engineering, 2002).  An act to amend the Canadian Environmental Assessment Act was reported to have been given approval during 2003.  The amendments are designed to improve the timeliness and efficiency of the federal environmental assessment process in Canada (Pay Dirt, 2003c).  The Canadian Institute of Mining, Metallurgy, and Petroleum has adopted best-practice guidelines for the estimation of mineral resources and mineral reserves.  Specific guidelines for all minerals are expected to be established in 2004 (Northern Miner, 2004a).  The Canadian government has allocated an additional C$10 million to the 3-year, C$15 million Targeted Geoscience Initiative which began in 2000 to survey areas in northern Canada thought to have undiscovered mineral and energy resources (Northern Miner, 2003a).  A similar survey has been commissioned by the Ministry of Indian Affairs and Northern Development to study the growing Canadian diamond industry.
Africa.  In Africa, mineral regulations were implemented in 2003 in the Democratic Republic of the Congo (DRC), which established a mineral exploration and mining lease process, imposed a set of environmental obligations, and increased opportunities for foreign investment in mining operations.  The code imposed royalties of 4 percent on precious stones, 2.5 percent on precious metals, 2 percent on nonferrous metals, and 0.5 percent on iron and ferrous metals.  Under this code, mining profits are taxed at the rate of 30 percent, and exploration and mining licenses are subject to annual fees (Mining Journal, 2003b).  Since implementation of the new regulations, the DRC has seen an increase in mineral exploration activity.  Mineral exploration in Ghana in 2003 was encouraged by actions of the government, which expressed its support for the proposed merger of Ashanti Goldfields Company Ltd. and AngloGold Ltd., by agreeing to vote its 16.9 percent stake in Ashanti in favor of the merger and expressed its willingness to vote against any competing offer (Northern Miner, 2003d).  The government has also allowed five mining companies to apply for mining permits in Ghana’s protected forest reserves (Sguazzin, 2003).
Mineral royalty changes were proposed for South Africa and Zimbabwe.  In South Africa, a draft bill proposed a 1 percent royalty on some bulk commodities, 3 percent on gold, 4 percent on platinum, and 8 percent on diamonds.  The Zimbabwean government continued plans to implement collection of royalties from mining operations after January 1, 2004, while reducing corporate taxes for mining operations from 30 percent to 25 percent, and exempting customs duties, import taxes, and sales tax refunds on all capital goods during the exploration phase of a mining project (The Herald, 2003).
Australia.  Native title claims issues continue to affect Australian exploration and mining.  The Native Title Act of 1993 provided the framework for determinations of native title.  The process for determining whether native title applies and the resolution of native title claims, however, has been slow.  As of September 22, 2003, 46 native title determinations have taken place in Australia; about two-thirds of these supported the rights of native title claimants.  As of October 8, 90 indigenous land use agreements had been negotiated in Australia, of which 60 percent relate to the State of Queensland (Fooks and Sun, 2003).  Queensland adopted an expedited process for dealing with mining exploration permits in 2003, in return for guaranteed protection for cultural heritage values on land subject to native title (MineBox, 2003b).  The Western Australia State Government has invested more than A$2.8M to speed up processing of mineral tenement applications on land under Native Title claim (Mine Box, 2002).  The Northern Territory State Government committed A$15.2 million to enhance the state’s geographical prospectivity; improve community education, land access, and mineral tenure; and strengthen interest in onshore and offshore petroleum acreage. The maximum exploration expenditure deduction on mineral royalties in the Northern Territory was reduced from 35 to 25 percent during 2003 (MineBox, 2003a).
Rest of the World.  Chinese mining laws and regulations pertaining to joint ventures with foreign mining companies continue to evolve slowly, but positively from an international investment perspective (Mining Journal, 2003a). The government has issued guidelines to allow foreign enterprises to conduct Chinese mineral exploration activities.  The Ministry of Land and Resources has developed a long-term program for mineral development, designating 10 major areas in western China for exploration and exploitation (Tse, 2004).
Japan has announced plans to spend 10.4 billion yen (US$88 million) to conduct a large-scale marine minerals survey of the continental shelves off the coast of Japan.  Under the 1983 U.N. Convention on the Law of the Sea, a coastal state may claim rights to the resources of a continental shelf beyond its 200-nautical-mile exclusive economic zone provided there is geographical continuity of the seabed (Pay Dirt, 2003b).
Ireland’s Minister of State for the Department of Communications, Marine and Natural Resources, announced several initiatives to gather and disseminate minerals exploration information.  The Airborne Magnetic Interpretation Initiative is a joint public-private agreement to process and interpret newly-released airborne magnetic data gathered as part of the Airborne Data Release Initiative of 2001.  The Minerals Administration Programme Support is a 2-year program designed to provide background geologic information on Irish minerals potential (Mining Journal, 2003c).
A master plan for developing the mining sector of the former Soviet Republic of Georgia is being funded by the Japan International Cooperation Agency (JICA).  Mineral exploration by foreign companies in the Republic has focused on the Bolnisi gold district and the southwestern porphyry copper belt (Norwest Mineral Sector Investment Focus, 2003b).  The Government of Armenia enacted a new Mineral Prospecting and Mining Law in 2003 governing the rights and obligations for mineral exploration and mining licenses, although the regulatory framework remains under development.  Under the new law, separate licenses are required for exploration and production, with an automatic transfer to a production license following successful exploration.  Licenses must be approved by the Ministry of Natural Protection, and can be withdrawn if minimum work requirements are not met (Norwest Mineral Sector Investment Focus, 2003a).
The USGS collects and analyzes data on more than 100 mineral commodities, both in the United States and worldwide.  This article draws from both public and private sector sources and the knowledge and expertise of USGS mineral commodity, country, and mineral-resource specialists.  More detailed information on the material covered in this article may be obtained from the author, David Wilburn, U.S. Geological Survey, P. O. Box 25046, MS 750, Denver Federal Center, Denver, CO 80225-0046; telephone 303-236-8747, extension 337; fax 303-236-4208 or wilburn@usgs.gov.  For additional USGS information on mineral commodities and international minerals activities, inquiries may be directed to Kathy Keys, U.S. Geological Survey, 988 National Center, Reston, VA 20192; telephone 703-648-4961 or kkeyes@usgs.gov.
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