WA resources exploration spend nears record high

Total mineral exploration expenditure in Australia increased by 5.2 per cent to $629.6 million for the June quarter, with Western Australia underpinning the growth, according to the latest figures from the Australian Bureau of Statistics.

In all, $184.3 million of exploration expenditure was undertaken in WA, the second highest figure on record.

WA’s exploration expenditure, on a trend estimate basis, was up by 6.2 per cent, accounting for $22.9 million of the total $31.3 million national increase.

The total current quarter estimate is 16.5 per cent higher than the June quarter 2018 estimate.

Base metals, including gold, were responsible for the largest increase in exploration expenditure (47.3 per cent), equating to a $60.6 million rise.

Association of Mining & Exploration Companies chief executive Warren Pearce said mineral exploration expenditure rose in every single state and territory, which was pleasing to see after a drop in the previous quarter.

“Greenfield mineral exploration expenditure continued another quarter of growth in all states except for Victoria where it fell by $1.6m declining for the third consecutive quarter,” he said.

“Australia needs greater greenfields mineral exploration, and the significant growth in greenfields mineral exploration expenditure right across the country reflects the returning strength of the exploration sector.”

Mr Pearce said WA’s result was outstanding.

In brownfields, mineral exploration expenditure grew in WA by $35 million, Queensland by $19.9 million, Victoria by $4.3 million, and Tasmania $1.6 million.

It remained the same in NSW, and dropped for South Australia and Northern Territory.

“It has been a challenging environment for mineral exploration companies, however the statistics are now supporting better growth in the industry,” Mr Pearce said.

Minerals Council of Australia chief executive Tania Constable said the government should help continue the positive momentum.

“The recently announced Productivity Commission inquiry into resources sector regulation is a welcome first step in ensuring state and federal governments have the policy settings that continue to support mining and even greater investment in exploration to develop Australia’s next wave of critical mineral, base metal and gold mines,” she said.