Photo by: Bloomberg
PERTH (miningweekly.com) – Total mineral exploration spend increased by 0.6% during the September quarter, to A$349.2-million, with Western Australia pushing the trend, delivering a 1.9% increase in exploration spend.
New data from the Australian Bureau of Statistics (ABS) on Monday revealed that the seasonally adjusted estimate for mineral exploration expenditure increased by 1%, to A$351.3-million, with Queensland being the driving force, with a 14.3% increase.
In original terms, mineral exploration expenditure increased by 7.2%, to A$379.5-million, with exploration in new areas increasing by 9.3% and on existing deposits, by 6.3%.
In the hunt for petroleum, expenditure fell by 6.9% during the three months to September, to A$324.5-million, with exploration on production leases falling 35.7%, and exploration expenditure on all other areas, falling by 0.5%.
The Association of Mining and Exploration Companies (AMEC) said on Monday that while the ABS figures showed greenfields exploration had increased by 30% over the last two quarters, it was still well below the high levels recorded four or five years ago.
“The increase in greenfields mineral exploration is attributable to a number of factors, including improved commodity prices. The federal government’s Exploration Development Incentive could also be having a positive impact on greenfields mineral exploration as intended," commented AMEC CEO Simon Bennison.
“State and Territory exploration incentive schemes/co-funded drilling programmes also continue to be crucial in encouraging mineral exploration in Australia, and generate significant economic returns.”
Bennison also said that it was pleasing to see some of the mineral-related initial public offerings and capital raisings that were planned, or had occurred in the past 12 months, saying that it was a sign that confidence was starting to return to the market, with investors coming out of hibernation.