Resource exploration recovering - ABS

PERTH (miningweekly.com) – New data released by the Australian Bureau of Statistics (ABS) has shown a recovery in exploration spending, with total expenditure up by 6.6%, or A$26.4-million, in the June quarter, to A$428.5-million.

The ABS said on Monday that Western Australia was the largest contributor to the increase in the trend estimate this quarter, with spending up 6.5%, or by A$17.4-million.

The current quarter estimate is 23.5% higher than the June quarter 2016 estimate.

The seasonally adjusted estimate for mineral exploration expenditure rose 9.9%, or A$39.3-million, to A$437.7-million in the June quarter 2017, with Western Australia again the largest contributor.

Metres drilled during the quarter increased by 6.9%, with the current quarter estimated to be up 27% on the June 2016 quarter.

Meanwhile, the trend estimate for total petroleum exploration expenditure rose 0.9%, or A$3-million, to A$345.8-million in the June quarter, with exploration expenditure on production leases rising 35.1%, or A$14.5-million, and exploration expenditure on all other areas falling by 3.6%, or A$10.8-million.

The seasonally adjusted estimate for total petroleum exploration expenditure rose 4.7% to A$355.6-million in the June quarter, while exploration expenditure on production leases rose 53.1%, or A$22.2-million, and exploration expenditure on all other areas fell by 2%, or A$6-million.

The largest contributor to the increase in the trend estimate was Northern Territory, which increased by 19.3%, or A$20.6-million, and the largest contributor to the rise in the seasonally adjusted estimate was Queensland, which was up 24.3%, or A$11.1-million.

The Association of Mining and Exploration Companies (Amec) on Monday pointed out that the base metals sector delivered the largest growth in mineral exploration expenditure, increasing by 73% in the June quarter. Gold exploration increased by 23%.

“Despite the positive growth, the percentage of greenfields mineral exploration of metres drilled remained fixed at 30%. Nearly 70% of mineral exploration activity in Australia is extending existing deposits or drilling nearby an existing deposit,” said Amec acting CEO Graham Short.

“Australia needs greater greenfields mineral exploration to find the mines of tomorrow.”

He said that the ABS statistics reinforced the need for the federal government’s recently announced Junior Mineral Exploration Tax Credit, which consists of a A$100-million tax incentive for junior explorers.