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Defining geological maturity: The effect of discoveries on early-stage mineral exploration

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  • Castillo, Emilio
  • Roa, Cintia

Abstract

Mining investment and competitiveness depend mostly on two variables: the institutional framework and the geological maturity. Particularly, the geological maturity depends on the combined effect between positive information spillovers, and the negative effect from the depletion of exploration opportunities. Using copper and gold discoveries, we estimate geological maturity as the effect of discoveries on early-stage exploration expenditures. Results suggest that each additional copper discovery has an effect that is not different than zero, signaling that information spillovers and depletion effects are balanced. On the other hand, each additional gold discovery has a positive and significant effect, suggesting that information spillovers still dominate over the depletion of exploration opportunities.

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  • Castillo, Emilio & Roa, Cintia, 2021. "Defining geological maturity: The effect of discoveries on early-stage mineral exploration," Resources Policy, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:jrpoli:v:74:y:2021:i:c:s0301420721003871
    DOI: 10.1016/j.resourpol.2021.102378
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    Cited by:

    1. Zhang, Zhimin & Elshkaki, Ayman, 2022. "An analysis of the supply-side factors of geological exploration in China based on provincial panel data between 1999 and 2017," Resources Policy, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Non-renewable resources; Mineral exploration; Geological maturity; Geological information; Discoveries;
    All these keywords.

    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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