Exploration lifts drill sector growth
A RISE in exploration expenditure has led to increased drilling across Australia this June quarter, with new deposit drilling leading the charge, according to the Australian Bureau of Statistics (ABS).
Holes drilled at new deposits rose 22.8 pc quarter-on-quarter ( QoQ) for June, while drilling at existing deposits rose 19.5 pc across the same time period.
The ABS’ Mineral and Petroleum June 2019 Quarterly Statistics, released on September 2, also showed total mineral exploration expenditure had increased $31.3m (5.2pc) to a near-record high of $629.6m for the quarter.
A total of about $2.3b was estimated to have been spent on exploration in FY19 – up 19 per cent from FY18.
The current quarter expenditure estimate was a whopping 16.5pc higher than the 2018 June quarter estimate, and expenditure rose in every state, with WA being by far the largest contributor to the rise with $22.9m.
Although metres drilled fell 1.2pc for the quarter, they were still 4.7pc higher than the June quarter estimate for the previous year.
Association of Mining and Exploration Companies (AMEC) chief executive Warren Pearce said the Australian Bureau of Statistics showed that mineral exploration expenditure rose in every single State and Territory of Australia.
“This is pleasing to see after a drop in the previous quarter,” he said.
Greenfields mineral exploration expenditure continued another quarter of growth in all states except for Victoria, where it fell by $1.6m, declining for the third consecutive quarter.
WA recorded an outstanding result with $184.3m of exploration expenditure, the second highest on record.
In brownfields, mineral exploration expenditure grew in Victoria ($4.3m), Queensland ($19.9m), WA ($35m) and Tasmania ($1.6m), remained the same in NSW, and dropped for South Australia and Northern Territory.
“Australia needs greater greenfields mineral exploration, and the significant growth in greenfields mineral exploration expenditure right across the country reflects the returning strength of the exploration sector,” Mr Pearce said.
“It has been a challenging environment for mineral exploration companies, however the statistics are now supporting better growth in the industry.”