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Author: Admin | 2025-04-27
Or greater reductions carried through to African exploration budgets. Budgets reduced further in 2010 and recovered in 2011 and 2012; but this was short-lived, and a steady and continuous decline in global annual budgets is noted, from $520 million in 2012 to $208 million in 2017 (S&P GMI, 2018a). This downward trend in budgets is not confined to diamonds, but has been general across all mineral commodities since 2012. A slight up-kick in overall exploration budgets was reported for 2017 (S&P GMI, 2018b) but did not appear to carry through to diamond exploration. S&P GMI (2018b) estimated the total global, non-ferrous metal exploration budget at $8.4 billion for 2017, but only $208 million (2.5%) was allocated to diamond exploration (S&P GMI, 2018a). Current estimates indicate that the total diamond exploration budget for southern Africa in 2017 was approximately $56 million, with 80% split fairly evenly between Angola and Botswana (Figure 8) (S&P GMI, 2018a). The immediate reasons for the post-GFC trends were most likely the inherent risks associated with exploration and the need for companies to conserve cash, especially smaller companies. As the recovery in diamond prices has been slower than hoped for and the long-promised upward price drive has not been forthcoming, the level of annual budgets allocated to diamond exploration has also diminished. Based on analysis of S&P GMI data, supported by a review of company annual reports, more than half of the global diamond exploration budget is spent by just two companies, Alrosa and De Beers. Alrosa in particular has become increasingly active outside Russia and in southern Africa is undertaking exploration in Angola, Botswana, Namibia, and Zimbabwe. Alrosa's JV with Endiama in the Catoca mine appears to be successful and is a strong pillar of the Angolan diamond mining industry. The new Luaxe discovery will add
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