Mineral exploration in Western Australia has reached a five-year high since the approvals process for applications was halved two months ago, with the surge dominated by gold projects.
Mineral exploration in Western Australia has reached a five-year high since the approvals process for applications was halved two months ago, with the surge dominated by gold projects.
The monthly application average of 195 increased by 63 per cent in August, with the Department of Mines Industry Regulation and Safety approving 99 per cent of the 317 program of work (POW) applications it received that month.
It comes after the 30-business day approvals process was halved in July, which also had a record month of 323 applications received.
Mines and Petroleum Minister Bill Johnston said gold exploration accounted for 70 per cent of applications received in July and August.
He said base metals and iron ore exploration would be the next most common targets.
“These encouraging figures indicate that Western Australia’s exploration sector is thriving, aided by the efforts of Streamline WA,” Mr Johnston said.
“The timeframe [for approvals] reduction will have a direct benefit to the mining industry and we can see it is already promoting economic activity in the regions.”
Association of Mining & Exploration Companies chief executive Warren Pearce said the results were encouraging and showed renewed strength in the exploration sector.
“The ability of the state government to prevent the spread of COVID-19 in WA has provided certainty around land access,” he said.
“This has meant that companies were able to focus their efforts on projects in the state.”
Mr Pearce said investment had also boosted the exploration sector, noting a BDO report that showed a 60 per cent rise in cash inflows in the June quarter.
Financing inflows were $1.34 billion, exceeding the five-year average.
“Twenty-eight companies were able to raise funds of $10 million or more, up from 12 companies in the March 2020 quarter, with gold companies ahead,” Mr Pearce said.
“These recent capital raisings are now translating into action on the ground."
Recent data from the Australian Bureau of Statistics showed that WA's total exploration expenditure grew by $45.3 million over the June quarter, to record $412.4 million.
That figure, however, remains about 7 per cent lower than the June 2019 quarter.
But Mr Pearce said this year's data was a promising result, given that exploration for the previous quarter (March) was $86.8 million lower than December 2019.
