Gold and Copper Exploration Rises in WA Despite Overall Dip in Spending
The Australian Bureau of Statistics (ABS) has released mineral exploration expenditure data for the December quarter, revealing increased gold and copper exploration in Western Australia.
WA recorded a 27 per cent rise in copper exploration, reaching nearly $50 million, returning to historic levels. Gold exploration also grew in the state.
Tasmania and South Australia saw the biggest gold exploration increases, rising 70 per cent and 69 per cent, respectively. NSW and Victoria recorded smaller increases of 18 per cent and 11 per cent.
Overall Exploration Spending Declines
Despite these gains, total mineral exploration expenditure fell 2.4 per cent ($24.4 million) from the September quarter, settling at $992.3 million.
Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce acknowledged the slowdown but reinforced mining’s importance to Australia’s economy.
“The trends are undeniable, and the sustained challenges we face are increasingly borne out by the data,” Pearce said.
“The economic imperative around the importance of this industry is well understood by the State and Federal Governments.”
Pearce urged stronger government support, especially as demand for critical minerals rises due to the global energy transition.
“Despite a strong end to the (2024) calendar year, activity was down on the September and previous December quarters,” Pearce said.
“Particularly concerning is the continuing drop in expenditure and drilling on greenfields deposits, pointing towards a level of caution and uncertainty around market sentiment for – and investments in – new projects.”
“This comes at a time when Australia should be ramping up activity across all commodities and all jurisdictions to meet global demand and energy transition objectives.”
Greenfields Exploration Spending Drops
Greenfields exploration fell 3.5 per cent from the previous quarter, reaching $267 million.
Pearce warned that meeting Australia’s critical minerals goals will require collaboration across the industry.
“It will not be possible to develop and secure our critical minerals opportunities or ensure a ‘Future Made in Australia’ without a concerted effort and commitment from all our industry stakeholders,” Pierce said.
Looking Ahead
While some areas saw gains, the overall slowdown signals a need for renewed investment and policy support. Ensuring long-term exploration growth will be crucial for Australia’s role in the future energy landscape.