A$35bn invested in WA mining industry in 2015/16 – ABS

PERTH (miningweekly.com) – Western Australia has attracted some 66% of the nation’s total mining investment in 2015/16, remaining the dominant destination for Australian resources investment, new figures from the Australian Bureau of Statistics (ABS) have shown.

ABS figures show that some A$35-billion was invested in Western Australia's mining industry in 2015/16.

As of September, Western Australia had an estimated A$97-billion of resource projects under construction and an additional A$46-billion of possible future projects.

Western Australia Mines and Petroleum Minister Sean L'Estrange said although the value of the resources industry was down 12% from 2014/15, the value of the sector remained strong at A$87.9-billion in 2015/16.

"The resources industry's current value is more than twice what it was ten years ago," L'Estrange said.

"The government remains committed to fostering a strong and sustainable resources industry through policies which support mining exploration and development."
 
Iron-ore remained the state's most valuable commodity, with iron-ore sales of A$48.4-billion accounting for 71% of total mineral sales in 2015/16.

"We are the world's largest exporter of iron-ore and currently produce 757-million tonnes per annum," the Minister said.

The total value of gold produced increased for the second consecutive year, to a record A$10-billion. This was largely owing to the price of gold rising from an average of $1 479/oz in 2014/15 to an average of $1 613/oz in 2015/16.

Meanwhile, ABS reported that total mineral exploration expenditure across Australia decreased by 2%, or A$7.1-million, to A$343-million in the June quarter. The largest contributor to the fall in the trend estimate during the quarter was Queensland, where exploration spend fell by 15.4%, or A$8-million. The current quarter estimate is 4.2% lower than the June quarter 2015 estimate.

The seasonally adjusted estimate for mineral exploration expenditure rose 1%, or A$3.5-million, to A$345.2-million in the June quarter 2016, with South Australia being the largest contributor to the rise, up 78.7%, or A$7.4-million.

In original terms, mineral exploration expenditure rose 21.9%, or A$63.5-million, to A$353.9-million in the June quarter 2016, with exploration on areas of new deposits increasing by 19.5% and exploration expenditure on areas of existing deposits increasing by 22.9%.

Total petroleum exploration expenditure across Australia fell by 19.4%, or A$76.8-million, to A$318.4-milllion, in the June quarter 2016.

Exploration expenditure on production leases fell 31.2% and exploration expenditure on all other areas fell 12.7%.

The seasonally adjusted estimate for total petroleum exploration expenditure fell 30.8%, or A$131.3-million, to A$295.3-million in the June quarter, with exploration expenditure on production leases falling 4.2% and exploration expenditure on all other areas falling 35.6%.

The largest contributor to the decrease in the trend estimate was Western Australia, which was down 14.9%, or A$44.6-million, with the state also constituting the largest contributor to the fall in the seasonally adjusted estimate.