The ABS’ mineral and petroleum exploration release for December showed a total of $A403.1 million in original terms spent on mineral exploration during the quarter, up 6.2% or $23.6 million on the September quarter.
The seasonally adjusted estimate rose by 5.8% to $374.9 million in the December quarter, with exploration in Western Australia being the largest contributor to this rise, up $18.5 million or 8%.
The most recent rise on original figures continues an upwards trend since the March quarter 2016, during which $290.4 million was spent, but well down from its high of June 2014, when over $1 billion was spent.
Most new money spent was on gold exploration, up $23.2 million or 14.6% to $182.3 million, while spending on nickel and cobalt exploration rose $5.6 million or 45% quarter on quarter to $17.9 million.
Exploration on areas of new deposits rose 15% or $17.1 million, while expenditure on areas of existing deposits rose 2.5% or $6.7 million.
Association of Mining and Exploration Companies CEO Simon Bennison said the trend toward more greenfield exploration was a positive one.
“Greenfields drilling rose 22%, while drilling in brownfields areas fell by 6% in December 2016 quarter compared to the September 2016 quarter,” he said.
“While the growth is positive, brownfields drilling remains substantially larger than greenfields, with 1.18 million metres drilled compared to 659,000m in the December 2016 quarter.”
Bennison said improved commodity prices and the federal government’s Exploration Development Incentive may be having a positive impact on greenfields mineral exploration, and called on the government to roll over funding of the program into 2017-18.
“State and Territory exploration incentive schemes/co-funded drilling programs also continue to be crucial in encouraging innovative mineral exploration in Australia, and generate significant economic returns for the economy,” he said.
