The Future Minerals Conference in Riyadh convened top minds from across the mining industry—government officials, investors, and industry leaders—to address one of the sector’s most critical challenges: funding the next generation of mineral exploration projects. As a participant in the panel “Funding the Next Wave of Mineral Discoveries,” our Managing Partner Praveen Sahay joined the discussion to share his perspective on overcoming barriers and implementing innovative strategies to support projects from greenfield exploration to the preliminary feasibility stage.
Exploration’s Greatest Hurdles
One theme was clear: exploration remains the most precarious link in the mineral production value chain. Early-stage exploration often struggles with a convergence of high risk, inconsistent markets, and a limited pool of accessible geophysical data. Entrepreneurs face steep hurdles, from navigating regulatory red tape to drawing investor interest. This precarious starting point can deter investment, even as global demand for critical minerals rises.
Moreover, the binary outcomes of mineral exploration—where a venture either succeeds spectacularly or fails entirely—contribute to a cautious investment environment. Additional challenges include slow permitting processes, minimal capital mobility, and limited collaboration between junior exploration companies and established mining giants. The absence of tailored capital market instruments further compounds these issues, making it difficult to draw in the funding needed to drive new discoveries.
Unlocking Opportunities: Panel Recommendations
Despite these challenges, Praveen and the other panelists highlighted a variety of promising solutions. They pointed to diversification strategies, innovative technologies, and targeted policy changes as ways to improve the funding landscape:
Portfolio Funds for Risk Diversification: Establishing dedicated funds to back multiple exploration ventures can reduce unitary risk. By spreading investments across a portfolio, stakeholders can increase stability and attract a broader array of investors.
Harnessing AI for Smarter Exploration: Emerging technologies, particularly artificial intelligence, are already transforming the mineral exploration process. Recent successes by startups such as Earth AI, Geologic AI, KoBold, and Minerva demonstrate how advanced data analytics can enhance success rates and improve profitability.
Data Sharing for Risk Reduction: Access to comprehensive geophysical data is critical. Governments and major mining companies can proactively share survey data to lower costs, increase exploration efficiency, and encourage more participants to enter the market.
Capital Market Innovation: Drawing inspiration from Canadian and Australian markets, the Kingdom of Saudi Arabia (KSA) is working to improve retail funding mechanisms. Re-listing successful international junior miners on Saudi exchanges could not only educate domestic investors but also foster a culture of mining investment at the grassroots level.
Stable Policy Environments: Finally, long-term stability in both policy and capital flow emerged as a cornerstone for sustainable mining development. Predictable frameworks and consistent funding streams will help drive the growth of mineral exploration projects and ensure a smoother transition to the next generation of energy and industrial resources.
Shaping the Future of Mining: Roles and Responsibilities
Praveen emphasized the shared responsibility among stakeholders to sustain and grow the mining sector. Governments must lead by creating stable regulatory environments, improving data access, and offering policies that support sustained investment. The private sector, on the other hand, should collaborate more closely—sharing knowledge, pooling resources, and engaging investors in meaningful ways. By working together, stakeholders can overcome current obstacles and ensure that mineral exploration flourishes in the years to come.
Conclusion
Praveen Sahay’s participation in the Future Minerals Conference brought valuable insights into the vital challenge of securing funding for mineral exploration. By acknowledging current weaknesses and embracing collaborative, innovative solutions, the industry has a clear pathway forward. With a strong focus on diversification, advanced technology, data sharing, and market-friendly policies, the mining sector can lay the groundwork for sustainable growth. As these strategies take hold, the promise of a robust, well-funded exploration landscape becomes not just an aspiration, but a reality.
