PERTH (miningweekly.com) – The latest data by the Australian Bureau of Statistics (ABS) has shown that mineral exploration expenditure rose by 4.5%, or A$44.5-million, to over A$1.02-billion in seasonally adjusted terms during the June quarter.

In original terms, mineral exploration expenditure increased by 23.2%, to A$10.5-billion, with exploration spend on existing deposits increasing by 24.5% to A$740.4-million, while greenfield exploration spend increased by 2% to A$312.9-million.

“Australia’s minerals sector has continued to be resilient throughout Covid-19, with the release of this morning’s statistics demonstrating continued demand for our minerals. Mineral exploration expenditure across Australia increased by 23.18% in the June quarter, up by A$198.3-million to A$1.05-billion in original terms. This is backed by record expenditure of $673.1-million in Western Australia,” said the Association of Mining and Exploration Companies (Amec) CEO Warren Pearce.

“Greenfield exploration expenditure reached a record high in 2021 of A$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% and brownfield expenditure by 22.3%, year-on-year.

“Metres drilled for this quarter increased by 17.43%, with drilling of existing deposits increasing by 20.88%, and greenfield drilling by 9.87%. While staffing shortages have significantly impacted drilling programmes across the nation for the quarter, heightened demand for drill rigs and exploration drilling remains,” said Pearce.

He noted that since the last quarter, total national expenditure had increased by 23%, and expenditure had increased across all jurisdictions with New South Wales increasing by 14%, Victoria by 1%, Queensland by 9%, South Australia by 16%, Western Australia by 28%, Tasmania by 92%, and the Northern Territory by 48%.  

Iron-ore experienced the greatest increase in expenditure this quarter, increasing by 44% to A$201-million, while nickel and cobalt also recorded a strong 24% increase to A$80.2-million, demonstrating the continued demand for Australia’s critical minerals. With an increase of 28% in exploration expenditure this quarter, Western Australia recorded its highest levels of expenditure ever.

“While industry is being impacted by labour and skill shortages, the commitment to mineral exploration remains key for industry. 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,” said Pearce.

“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.”