Capital

Exploration Boom in West Africa

Opportunity or Challenge?

The mining industry is poised for a substantial increase in exploration to replace mined production and increase reserve and resource inventories ahead of a metals ‘supercycle’.

Global reserves and resources of critical metals are at a cyclical low, with average mine lives having halved in the past decade due to lack of investment in exploration programmes.

Growing reserves and resources can only happen through two principal means – drilling and assaying, and through mergers and acquisitions (“M&A”).

Capital markets continue to fund mining companies at a level not seen for the past decade, but this exploration boom has been slow to arrive in Africa, and has the potential to constrain the supply side response to demand, particularly in West Africa (“the Region”).

Download our White Paper which provides an analysis into why West Africa in particular is going through a sustained period of elevated exploration activity precisely at the time when the mining sector is entering what leading market commentators such as JPMorgan and Goldman Sachs refer to as the current metals ‘supercycle’.