While the trend estimate for total mineral exploration expenditure dropped $A12.3 million to $344.1 million (3.5%) in the quarter, the seasonally adjusted estimate rose 11.6% ($38.5 million) to $369.5 million.
Western Australia was the largest contributor both to the fall in the trend estimate, down 3.1% (-$6.5 million) and to the rise in the seasonally adjusted estimate, of 12.8% (+$24.8 million).
In original terms, mineral exploration expenditure rose 14.5% (+$50 million) to $394 million in the September quarter 2015.
Exploration on areas of new deposits rose 0.9% (+$1 million), and expenditure on areas of existing deposits rose 21.3% (+$49 million).
In original terms, the largest increase by minerals sought was expenditure on gold, up 19.2% (+$21.6 million), followed by expenditure on coal, up 12.2% (+$6.1m).
In the search for maiden resources, the trend estimate for metres drilled dropped 1.9% while the seasonally adjusted estimate for metres drilled lifted 1.9%.
In original terms, total metres drilled increased 2.1%.
Whilst drilling in areas of new deposits fell 22.1%, drilling in areas of existing deposits increased 11.8%.
The Association of Mining and Exploration Companies expressed concern over the drop in greenfields exploration.
“Greenfield mineral exploration is still at record lows, similar to that of the March 2009 quarter,” AMEC CEO Simon Bennison said.
“Although brownfields mineral exploration is essential for extending the life of current mines, it is greenfields mineral exploration that uncovers new significant discoveries that will replace our depleting mines.
Bennison said AMEC has been a strong advocate for initiatives which encouraged investment in greenfields mineral exploration.
“The first round of the Exploration Development Incentive (EDI) has been offered and the modulation factor of 1 was announced last week meaning applicants will receive their full allocation. This is an extremely positive result and we look forward to the ongoing success of this scheme,” he said.
“The EDI will assist Australian greenfields exploration companies raise much needed investment capital by allowing them to pass on to their Australian resident shareholders a proportion of eligible exploration expenditure in the form of a tax credit.”
