Junior Geological Exploration Companies: Development Prospects in Russia
A stable materials sector is the foundation of sustainable global economic growth. It is expected that the mining sector will retain its role as the backbone of the global economy and consumption will continue to grow over the next 20 to 25 years. The green economy has emerged as a new driver of materials sector development. Green economy trends such as decarbonization, the development of renewable energy and energy storage technologies, clean transport, and hydrogen fuel have led to growing demand for primary metals and materials, significantly altering traditional materials consumption patterns and generating demand for new metals and materials. The Russian economy has an obvious competitive advantage in the form of its wide and diverse mineral-resource base. The mining sector is the foundation of the Russian economy and makes up 12% of the GDP, without taking into account its effect on the secondary sector. Russia and the rest of the world are now facing the issue of dwindling reserves in their largest and most economically viable deposits. In leading countries, the problem of dwindling commodity reserves is solved in party by attracting private funding to geologic exploration by way of junior geological exploration companies. They take on up to 40% of the cost and attract billions of dollars to the industry. Russia has enormous geological exploration potential and is in a stage of transition. The Strategy for the Development of the Mineral Resources Base of the Russian Federation until 2035 foresees the gradual reduction of government spending and increase of private investment in geological exploration. What does Russia need to realize this potential and remain competitive in a changing world? What steps must be taken so that businesses can smoothly replace the government in the early stages of geological exploration? How can restrictions be lifted to attract private capital to geological exploration?
