New data released today revealed exploration on new areas of new deposits dropped 23.2% in the March 2012 quarter, equivalent to about $A75 million.
Despite the drop in exploration in untapped areas, the latest Mineral and Petroleum Exploration Australia data found mineral exploration expenditure in the March quarter totalled $1057.7 million, up 7.1% from the previous quarter and 35.1% from the same time last year.
Breaking the figures down, Western Australia proved to be a major contributor in the rise in exploration spending, with exploration in the state up 12.3% or $62.7 million, while Queensland was up 3.2%.
There was also a flurry of exploration activity in South Australia during the quarter, with exploration in the state totalling $73.4, up from $62.6 million in the same quarter in 2011.
Federal Resources and Energy Minister Martin Ferguson said the latest figures indicated resource exploration in new areas of Australia needed extra support.
“I am working with my state and territory counterparts to increase investment in exploration,” he said.
Ferguson said he was actively looking to push greenfield exploration following the recent Standing Council on Energy and Resources meeting last week, where it was agreed to implement the national exploration strategy.
“The NES is about developing a long-term strategy to unlock our future pipeline of resource investments, this multifaceted strategy will ensure the longevity of Australia’s resources industry,” he said.
The NES will comprise of a national geoscience research initiative, will renew commitment to pre-competitive geoscience in all jurisdictions and will promote Australia as a centre of excellence on exploration, resources services and research.
Minerals Resources and Energy Minister Tom Koutsantonis said South Australia had come out from the shadows with exploration activity in the state now soaring.
“South Australia is back on track after the slowdown caused by the global financial crisis and has reaffirmed its position as a major destination for investment in minerals exploration,” Koutsantonis said.
Spending on mineral exploration in South Australia totalled $323.7 million in the 12 months to the end of March 2012, up 48.8% year on year.
“The increase in spending by explorers comes ahead of the proposed opening of the Woomera Prohibited Area to greater exploration, which will no doubt attract even more investment into this state,” Koutsantonis said.
While the latest figures on exploration exposed the need to encourage exploration in untapped areas, Ferguson said it was important to remember the strength of Australia’s mining sector.
“While we are focusing on the future, it is important to recognise the strong performance of the Australian mining sector, as it continues to support the growth if the economy more broadly,” Ferguson said.
This article first appeared in ILN's sister publication MiningNews.net.
