The mining and exploration sector spent $552 million on mineral exploration and development in 2024, a 14 per cent decrease over the $643 million spent in 2023, according to a new report from business services firm EY.
The reason for the slightly lower spend is that much of the spending in 2023 was in later stage development of projects as they matured towards “operational readiness.”
“This nearly $100 million difference is indicative of the progression of flagship projects, which in years past would represent a significant portion of annual spend, maturing away from exploration and naturally redirecting resources toward the next phase of development,” EY said in its annual mineral exploration survey, released Thursday.
Copper and gold were the principal targets of exploration spending in 2024, but EY notes there was also a notable increase in exploration related to critical minerals other than copper. Spending on exploration for critical minerals increased from $24 million in 2023 to $49 million in 2024.
The survey also notes an uptick in exploration spending for metallurgical coal, which saw the exploration spend increase to $38 million in 2024 from $26 million in 2023.
"This is a substantial increase from the decade-lows B.C. experienced in 2022, where expenditure for metallurgical coal was only $12 million," the report says.
EY suggests the increase in spending in metallurgical coal spending may be related to "recent acquisition activity in the market and a fresh injection of new capital into exploration projects."
As BIV recently , Conuma Resources acquired two idled coal mines in the last two years – the Quintette mine in 2023 and, more recently, the Peace River Coal mine.
"While difficult financing conditions and a shift in project maturity slowed down reported exploration spend in 2024, continued demand for critical minerals and federal policy incentives may signal a turnaround for the sector in the future," EY says in its report.
The minerals-rich Golden Triangle – northwest B.C. – remains the zone of most interest for mineral exploration. The region accounted for 63 per cent of all exploration spending in 2024.
“The region notably serves as the home of projects with the largest mineral exploration spend in the entire province, namely the Eskay Creek project operated by Skeena Resources Limited, the Galore Creek Project operated by Galore Creek Mining Corporation and Kitsault Valley operated by the Dolly Varden Silver Corporation,” EY notes.
According to the report, exploration spending employed 4,143 workers in 2024, up from 3,779 workers in 2023.
