The Australian Bureau of Statistics’ (ABS) newly released mineral exploration statistics for the June 2022 quarter show a significant increase in areas including exploration across Australia, exploration expenditure and metres drilled.
Since the last quarter, total national expenditure has increased by 23 per cent, and expenditure has increased across all jurisdictions with New South Wales increasing by 14 per cent, Victoria by one per cent, Queensland by nine per cent, South Australia by 16 per cent, Western Australia by 28 per cent, Tasmania by 92 per cent, and the Northern Territory by 48 per cent.
With an increase of 28 per cent in exploration expenditure this quarter, Western Australia recorded its highest levels of expenditure ever.
Association of Mining and Exploration Companies (AMEC) Chief Executive Officer, Warren Pearce, said the statistics demonstrate continued demand for Australia’s minerals and show that the nation’s minerals sector remained resilient throughout COVID-19.
“Mineral exploration expenditure across Australia increased by 23.18 per cent in the June quarter, up by $198.3 million to $1.05 billion in original terms. This is backed by record expenditure of $673.1 million in Western Australia,” Mr Pearce said.
Greenfield exploration expenditure was up $52.6 million to $312.9 million, an increase of 20.21 per cent, while exploration on existing deposits also saw an increase of 24.49 per cent to $740.7 million.
“Greenfield exploration expenditure reached a record high in 2021 of $1.207 billion. Despite ongoing COVID-19 challenges impacting the ability to staff operations and access to tenements, greenfield expenditure has grown by 1.85 per cent and brownfield expenditure by 22.3 per cent, year-on-year.”
Mr Pearce said although staffing shortages significantly impacted drilling programs across the nation for the quarter, heightened demand for drill rigs and exploration drilling still remains.
“Metres drilled for this quarter increased by 17.43 per cent, with drilling of existing deposits increasing by 20.88 per cent, and greenfield drilling by 9.87 per cent.
Iron ore experienced the greatest increase in expenditure this quarter, increasing by 44 per cent to $201 million. Nickel and Cobalt also recorded a strong 24 per cent increase to $80.2 million, demonstrating the continued demand for Australia’s critical minerals.
“While industry is being impacted by labour and skill shortages, the commitment to mineral exploration remains key for industry,” Mr Pearce said.
“Our ability to remain the investment destination of choice is paramount if we are to discover the mines of the future and deliver long-term, wide-ranging benefits to Australia.
“Continued strength in mineral exploration expenditure is underpinned by a high level of confidence that the mining and investment cycle still has a long way to run.
