Speaking in Melbourne on Thursday, Rio Tinto executive Alan Davies bemoaned the lack of large mineral discoveries in recent years, which had coincided with dramatic cuts to spending on exploration from mining companies.
Outlining that the era of cost-cutting cannot last forever, he urged the mining industry to excel at exploration.
"We are in an industry where our assets expire. But we know the world will continue to demand our products," he said.
"A decade ago, as an industry we were discovering more than 50 new resources a year and now the number is less than 15."
With the current situation in the commodities marketr, such giants as BHP and Rio, had to slash their spending. BHP spent $US1.7 billion on exploration in the 2012 financial year but that will fall to just $US600 million this financial year, while Rio has cut its exploration budget by $US1.2 billion over the same period.
The executive said technological developments would hopefully provide a step change in the efficiency of exploration.
"Cutting costs will only take us so far along the value chain. We also need to grow our revenue," he said.
"Exploration will remain fundamental to finding new sources of 'tier one' deposits. The real likelihood is that the emerging technologies now available to us as an industry will start to uncover a new generation of deposits and increase our hit rate."
The mining industry is already developing autonomous drilling rigs, which can reduce the number of workers needed in exploration.
Mr Davies pointed to the way advancements in horizontal drilling had sparked the shale boom in the United States and changed the oil market. Similar types of technology could be adapted to assist exploration, he said.
"Who is not to say that new drilling and real-time assaying will not transform minerals exploration in the way horizontal and lateral wells have transformed the shale, oil and gas industries," he said.
"If we want to shape our destiny, our definition of excellence must include excellence in exploration."
Rio Tinto reports its full-year financial results on February 12.
