Photo by: Bloombeg
PERTH (miningweekly.com) – While the latest exploration figures from the Australian Bureau of Statistics (ABS) indicated some improvements in greenfield exploration, the Association of Mining and Exploration Companies (Amec) said there was still a long way to go.
The ABS revealed on Monday that, in original terms, mineral exploration expenditure rose by 8.5%, or A$27-million, to A$344-million in the June quarter, with greenfield exploration up by 25.3%, or A$23-million, and expenditure on areas of existing deposits up by 1.3% or A$3-million.
In original terms, the largest increase by minerals sought came from expenditure on gold, which was up by 22.7%, while coal exploration was up by 15.4%.
The ABS reported that total expenditure on exploration fell by 10.9%, or A$41.2-million, to A$336.2-million in the June quarter, with Western Australia seeing the largest decline in exploration spend.
The ABS estimated that the September quarter would see a further decline of some 28% in exploration spend, compared with the June quarter.
The seasonally adjusted estimate for mineral exploration expenditure fell 13.9%, or A$51.8-million, to A$322-million in the June quarter, with Western Australia’s contribution falling 13.9%, or A$30.2-million, and South Australia 57%, or A$14.6-million.
Total petroleum exploration expenditure also fell 12.7%, or A$119.6-million, to A$821.3-million in the June quarter, with the ABS noting that exploration expenditure on production leases fell 21.2%, or A$40.8-million, while exploration expenditure on all other areas fell 9.2%, or A$68.8-million.
The seasonally adjusted estimate for total petroleum exploration expenditure fell 31.3%, or A$320-million, to A$702.8-million in the June quarter, while exploration expenditure on production leases fell 38.7%, or A$79.7-million, and exploration expenditure on all other areas fell 29.4%, or A$240.3-million.
Amec CEO Simon Bennison said on Monday that, while some improvements were seen in exploration during the June quarter, there was still a long way to go to return to the levels of mineral exploration seen during 2011 and 2012.
“The increase from the March quarter in original terms for mineral exploration on existing and new deposits is reflective of the lower levels of drilling that take place from January to March.
“However, compared with the June 2014 quarter, metres drilled on new deposits is up 42% in original terms, while expenditure is down 21%. This indicates the cost of exploration is coming down as would be expected in the current market conditions.
“This is good news for explorers and will, hopefully, mean we will continue to see an increase in metres drilled,” Bennison said.
He noted that territory and state exploration incentive schemes have been crucial in encouraging exploration, adding that they were highly regarded by the industry and have demonstrated significant economic returns to the jurisdictions.
Bennison pointed out that the Exploration Development Incentive (EDI) was now available and would assist in encouraging greenfield mineral exploration, adding that applications for the EDI for eligible greenfield mineral exploration during FY2014/15 would close on September 30.