Some of the biggest potential for profit is created when new geographies open for exploration.
Especially when those spots come with proven potential.
The world got news of one such up-and-coming locale this week. In India's northwestern state of Rajasthan.
Local press reported that the Rajasthan state government has identified 30 new exploration blocks. Which it now hopes to open to bidding from the private sector. Related: Energy Stocks: Undervalued Or Value-Trap?
The news came as part of a meeting between officials from India's national government and representatives of Rajasthan's state government. With the state officials formally notifying the national government of their intent to offer the blocks up for bids.
The most attractive part is, the areas on offer have already seen a good deal of government-backed work. With potential reportedly identified for base metals, iron ore, gold, potash, manganese and more.
In fact, as part of this week's meeting, India's national Steel and Mines Minister Narendra Singh Tomar shared detailed reports on many of the locations -- which have been prepared by the central government and will be available as part of the bidding process. Related: Bankruptcies Starting To Pile Up In Coal Industry
Few details have been released beyond this. But official comments suggest that a number of the properties are already well advanced -- with state officials saying that more than half of the new licenses will be offered as "mining leases." Suggesting they are at a near-development stage.
The remainder of the new areas will be offered as prospecting licenses. But many still have considerable potential -- as indicated by the work already completed.
All of this is great news for the exploration sector. Not only because of these specific opportunities, but also because this signals that India as a whole is opening to minerals development. Related: This Is Why The U.S May Actually Not Be The No.1 Oil Producer
That would be a welcome happening in a place where regulatory issues have all but stymied exploration for decades. Despite phenomenal potential in commodities like gold, iron ore, and vanadium.
Watch for the level of interest from the private sector -- and particularly foreign developers -- in the new properties on offer.
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Here's to opening up,
Dave Forest
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