This article is a sponsored feature from Mining.com.au partner BHP Xplor. It is not financial advice. Talk to a registered financial expert before making investment decisions.
As the world grapples with the urgent need for cleaner, greener technologies, the demand for critical minerals has never been greater.
This surge has placed increased pressure on the exploration industry to not only find new deposits, but to do so more efficiently and sustainably. At the same time, markets are getting tighter for juniors looking to raise capital.
This is why BHP (ASX:BHP) has opened its third round of applications for its Xplor program, a six-month, accelerator program for early stage explorers looking to fast-track and de-risk their projects.
The mining giant describes the program as its “front door for early-stage opportunities in the junior exploration market”.
BHP Vice President Exploration Sonia Scarscelli says the company developed the Xplor program to address the challenge of declining global discovery rates.
Data from the Australian Bureau of Statistics shows that while mineral exploration expenditure rose in the March quarter 2024, the rate of discoveries has actually decreased.
Expenditure reached $910.4 million — the highest March figure on record — yet metres drilled for greenfields and brownfields fell by 33.4% to 496.4km and 21.1% to 1,502.8km, respectively.
The Association of Mining and Exploration Companies says the percentage differences between the fall in expenditure and the fall in metres drilled shows the impact rising costs are having on the exploration sector.
BHP started its Xplor program in 2023 and since then has worked with junior explorers including Cobre (ASX:CBE), East Star Resources (LSE:EST), Hamelin Gold (ASX:HMG), Impact Minerals (ASX:IPT) and Kingsrose Mining (ASX:KRM).
Accelerating exploration, fostering collaboration
Alex Walker, CEO of East Star Resources and BHP Xplor alumni – part of the 2024 cohort, says the toolkit that the program provided East Star has elevated the company in terms of professionalism.
“Having someone who feels like they are absolutely in your corner has been amazing,” he says.
“Since Xplor, we’re expanding, we’ve built a bigger team, and we have bigger targets. We expect that this will result in a better outcome for all stakeholders.”
Hamelin Gold was also selected as part of the 2024 cohort, with the program to support and accelerate the company’s assessment of nickel-copper-platinum group element (PGE) potential of the Tanami Province in Western Australia.
Managing Director Peter Bewick said in January, following news of the company’s selection, that partnering with BHP through the Xplor program would facilitate the accelerated assessment of the nickel-copper-platinum group element potential of the Tanami Province in Western Australia.
Successful applicants receive up to $722,013 (US:AUD conversion rate is subject to change) in an equity-free grant from BHP, along with access to a network of industry experts to support technical, business, and operational development.
Other benefits of the program include connection to BHP’s ecosystem of partners and service providers, a tailored learning program, and the opportunity to pitch for follow-on funding or BHP partnerships throughout the program.
Scarselli says the 2024 Xplor program was an unforgettable journey filled with growth, innovation, and discovery.
“The program applications doubled from 2023 to 2024, and we are excited to see who will come forward for our 2025 program,” she says.
“The increased demand for critical metals presents a unique opportunity for junior explorers, but success requires strong two-way partnerships built on trust.”
Scarselli says Xplor is a “boldly different way of thinking”.
“It’s about shared vision. We believe this approach will help us to be better as an exploration industry and expedite the discovery of critical minerals required for a greener future,” she says.
BHP says the Xplor program represents more than just an investment in individual projects; it’s an opportunity to tap into a diverse range of exploration initiatives that span new geographies and geological concepts.
Applications for the program are open from 2 September to 9 October 2024.
Images: BHP Xplor
