Many Governments Fail to Develop their Countries’ Mining Potential Because of the Choices they Make. Data Suggests Exploration-Based Mine Licensing is More Successful than Separate Exploration and Mine Auctions Scheme

Exploration-based mine licensing provides a sustainable model for attracting investment and increasing mine openings. It supports geological research, financial viability, and long-term resource development, whereas auction-based systems often prioritize short-term revenue at the cost of long-term industry growth. In Australia, an "exploration-based mine licensing" refers to the process of obtaining an "exploration license" which allows a company to investigate and search for potential mineral deposits within a designated area before applying for a full mining lease, essentially giving them the exclusive right to explore for minerals without the ability to mine until further approvals are secured through a more advanced license stage. Critical raw materials form the backbone of high-tech products, renewable energy technologies, and other industrial applications. This means that for any green transition to be successful, there has to be a corresponding availability of critical raw materials. Particularly for the European Union (EU), this is becoming a worsening headache as these vital resources are sourced overwhelmingly from outside, leaving the bloc vulnerable to price volatility, supply disruptions, strategic dependence, and even environmental concerns related to sourcing critical raw materials from countries with less stringent environmental regulations.