Global Economics Relating to the Exploration of Unconventional Mineral Resources

Exploration of unconventional mineral resources is stimulated by uncertainties about the cost and security of conventional resource sup- plies. Costs of the latter are likely to increase as a result of inflation, higher energy costs declining productivity, a lack of sufficient investment in politically volatile areas, or through cartel-like action. Exploration of unconventional resources is likely to be delayed by these same factors, insufficient research and development facilities, and a decline in capital formation. World economic growth is likely to be slow, so there will be more emphasis on material conservation. Therefore, the incentive to explore for unconventional resources may be reduced.