Implications for companies and individuals of current changes in exploration strategy

Introduction Clearly, many problems confront the minerals industry today. Yet, at the same time, there is too much energy spent bemoaning the negative effects of difficult economic circumstances, low metals prices, and adverse government policies. These are factors that cannot be altered by individual mineral company reactions. In fact, as we look to the future, the only thing we can be certain of is that we will continue to be faced with uncertainty. Thus, an area that demands close scrutiny and that can significantly affect a company's performance in the future is the posture it adopts to deal with uncertainty. This paper looks at how strategies are developing to deal with this issue. It also examines some of the implications that implementing such strategies have for the role of the individual explorationist. Elements of strategy Whether mineral company strategies are based on diversifying or retrenching, on emphasizing primary production or downstream integration, there seems to be increasing agreement that in the current environment strategies must have several features. They need to be information-based - developed out of access to timely and complete data and analysis about proposed directions and competitor activity, rather than simply following a current fashion. They need to be flexible - adaptable in light of changes in the marketplace and an unpredictable industry. And they need to be cost-efficient - making the most of limited resources. Whether a company is looking for gold financing opportunities, acquiring polymetallic prospects, or doing grassroots exploration for diamonds, these three elements are increasingly essential. They not only allow the company to pursue its current goals most expeditiously, but also open it to hearing and using feedback in the most constructive way. The company can then improve or change strategy as it proceeds. And it can be best positioned to take advantage of opportunities as they arise. These elements of strategy place great emphasis on the skills of the individual. The need for critical intelligence and the reduced amount of capital available to manage are making it more obvious that exploration is a "people" business. This is in accordance with a general trend in many sectors of industrialized economies, reflecting the widely discussed shift from smokestack to information-based industries. Increasing the odds There is a direct connection between successfully implementing the approaches to strategy discussed above and encouraging and improving the quality of work of the individual explorationist. To illustrate the importance of this, some commonly quoted figures on the odds of discovery success can be used. These figures are arbitrary but illustrative. Assume that one out of 100 exploration prospects actually turns out to be a promising ore body, and that one out of 1000 becomes a mine. Based on our research, chances are the most of those