" The lowest level of exploration in almost 30 years and a...

" The lowest level of exploration in almost 30 years and a fixation on dividends is setting up the next resources super cycle, Goldman Sachs says.
A detailed analysis of the global mining sector by the investment bank's commodity analysts has painted a picture where ageing operations, a lack of discoveries and environmentally inspired mine closures across China combine to keep commodity prices strong.
The analysts found the percentage of revenue being reinvested in exploration by world miners had fallen to its lowest level since 1990.
Exploration success is the genesis of the mining industry - assets can't be mined until they are found - and thus the underspend on new project discovery may be sowing the seeds for future production challenges.
Annual capex spending by the world miners is now around $50 million, about a third of its boomtime highs and a level not seen since 2006.
The need for new mines will become even more pressing in future, given the age of the operations responsible for much of the world's commodity supply.
Whereas the last commodities boom was driven by a surge in demand from China, the next boom will reflect issues with supply. "