PERTH (miningweekly.com) – The Western Australian Chamber of Minerals and Energy (CME) has called on miners to stop the ongoing decline of mineral and petroleum exploration in the state, after recording a decline for a third consecutive quarter.

“While the decline over three quarters in exploration expenditure is likely due to the weak commodity price and high-cost environment, every effort should be made to arrest this decline,” said CME acting CEO Nicole Roocke.

During the quarter ended March, total mineral and petroleum exploration declined by 22% to A$1.14-billion compared with the previous quarter, after falling 4% in the December quarter.

This is the third consecutive quarter mineral exploration has declined. Compared with the corresponding quarter a year ago, mineral exploration is now 14% lower.

CME has been calling for incentives similar to the Canadian flow-through share scheme, such as a minerals exploration tax credit, to boost the sector.

“To establish a future pipeline of projects we rely upon increasing the current level of exploration activity here in Western Australia,” said Roocke.
 
“Notwithstanding the transition under way in many major projects from construction to operational phase the future pipeline of projects relies upon increasing the current level of exploration activity here in Western Australia.”

She noted that policies such as the Western Australian government’s Exploration Incentive Scheme were welcomed by the resources sector and would deliver a significant return to the people of Western Australia.

“As we move closer to a federal election, CME looks forward to a serious policy discussion across all major political parties about how to reduce the costs of doing business and strengthen the Australian resources sector’s international competitiveness,” Roocke added.

The economy, as a whole, continued to grow for both the quarter and the year, with increases in gross domestic product of 0.6% and 2.5% respectively.

During the March quarter, production for several commodities decreased, with contributing factors including the seasonal cyclonic weather conditions.

Iron-ore production was down by 4.6% during the quarter to 129-million tons, while gold production was down 10% to 43 t. Copper production was down nearly 14% to 50 000 t, while nickel production was down 4.8% to 58 000 t.

Liquefied natural gas production was up nearly 14% to 18.3-million tons, while mineral sands production was also up by 3% to 24 200 t.

The CME noted that the picture for exports in the March quarter was mixed, with the export value of gold decreasing by 5.4% as a result of the fall in the gold price, while the export value of iron-ore increased by 14.9%, owing to higher average export unit value during the March quarter.