WA sets new exploration record as hunt for gold ramps up

3 months ago 14

Western Australia’s resources sector has broken the quarterly record for the largest amount spent on exploration expenditure, with the state’s leading industry forking out more than $734 million on mineral exploration and expenditure during the September quarter.

According to the latest figures from the Australian Bureau of Statistics, a total of almost $1.067 billion was spent on mineral exploration by private companies at a national level last quarter, with WA behind the majority of that figure at $743.3 million.

WA has set a new record for mineral exploration, according to new ABS figures.

The national figure represents a 5.7 per cent increase over this year’s June quarter amount of $1.0167 billion, while WA recorded an overall exploration increase of just over 5 per cent.

However, despite more money being spent on exploration, the total number of metres drilled decreased by 1.5 per cent across Australia from the corresponding three-month period in June.

Nationwide, gold exploration expenditure increased by 7.2 per cent to come in at $431.5 million with WA taking out the largest percentage, with $349.5 million spent locally in the September quarter.

It also represents the highest quarterly spend on gold exploration expenditure since ABS records began recording the figure.

A total of $220.6 million was spent on iron ore exploration, the highest in over a decade, followed by copper at $38.5 million, while nickel and cobalt combined added another $38.2 million.

More than $570 million was spent on additional exploration on existing deposits in WA compared to just $163 million shelled out on greenfields exploration or new discoveries.

Association of Mining and Exploration Companies chief executive Warren Pearce said the latest figures highlighted gold’s ability to maintain explorer interest, “buoyed obviously by recent gold price highs and the continuing uncertainties seen in global markets”.

“As an industry it is critical we continue to build a pipeline of discoveries and this requires a dollar commitment to greenfields exploration and a recognition by governments of the importance of new projects to ensure the future economic prosperity of the nation remains secure and achievable,” he said.

Gold price has been a significant driver for the increased spend on exploration.

New Chamber of Minerals and Energy WA chief executive Aaron Morey said the fact WA had set a new record for gold exploration 140 years after the precious metal was first discovered in the state showed just how much untapped potential still existed.

“The historically strong price environment for gold, coupled with WA’s world-leading reserves, has naturally driven a sharp rise in exploration,” he said.

“At the same time, increasing price pressures for gold explorers across a range of areas – including salaries, equipment and the costs associated with land access – is also driving up the cost of exploration.”

Morey also noted the high investment in iron ore exploration expenditure compared to previous years.

“It is also worth highlighting that spending on iron ore exploration reached highs not seen for well over a decade – which is a strong show of faith in the long-term future of another of WA’s bedrock commodities,” he said.

“More than $870 million was spent on mineral and petroleum exploration in Western Australia in the September quarter. Not only is that investment uncovering a pipeline of future projects – it is money flowing today to contractors and communities across the length and breadth of our state.”

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