Exploration spending fell in the three months to September as another big drop in exploration for petroleum products offset a small rise in spending on mineral exploration.
According to the Australian Bureau of Statistics, total exploration spending, seasonally adjusted, fell to $1.47 billion in the quarter from $1.62 billion in the September quarter of 2009.
That was a fall of more than 9%.
The fall in petroleum exploration was notable, more than 15% overall and led by a near 20% drop in offshore exploration expenditure in the quarter.
The ABS figures yesterday show that total exploration was running at an annual rate of more than $5.6 billion in the September quarter of this year, still below the $5.7 billion rate for the full 2010 financial year.
The 2009-10 figure was down 5% from the amount spent in the 2008-09 year.
The figures also showed that the most popular mineral (apart from petroleum) was uranium where spending on exploration rose in the quarter, especially in Western Australia.
That reversed a fall in 2009-10.
The seasonally adjusted estimate of mineral exploration expenditure rose 0.6% (or $4.0 million) to $619.7 million in the September quarter 2010, according to the ABS.
The largest rise this quarter was in Northern Territory (up 24.3% or $8.9 million); while Victoria had the largest fall (down 34.6% or -$7.2 million).
The ABS said that in original terms, "Mineral exploration expenditure rose 5.1% (or $32.3m). Northern Territory had the largest rise (up 54.6% or $19.7m), followed by Western Australia (up 5.0% or $18.3m).
"In original terms, exploration on areas of new deposits fell 3.3% (or -$8.3m), while expenditure on areas of existing deposits rose 10.5% (or $40.6m)."
The figures show that in original terms the largest rise by minerals sought came from expenditure on uranium exploration (up 38.2% or $16.2 million), with the largest rise occurring in Western Australia.
The next largest rise came from expenditure on nickel and cobalt exploration (up 22.9% or $12.9 million).
The ABS said that, seasonally adjusted, the total metres drilled fell 1.9% in the September quarter 2010. In original terms total metres drilled rose 6.2%. Drilling in areas of new deposits fell 2.5% and drilling in areas of existing deposits rose 11.9%.
The ABS said there was 15.5% drop in spending on petroleum exploration for the September quarter 2010.
That was a fall of $155.5 million to $850.4 million.
"Expenditure on exploration on production leases rose 17.7% (or $41.1m) to $273.4m, while exploration on all other areas fell 25.4% (or -$196.6m) to $577.0m this quarter.
"In the September quarter 2010, the largest fall in petroleum exploration expenditure was in Western Australia (down 13.8% or -$95.2m), followed by Victoria (down 51.5% or -$44.6m). Queensland showed the only rise (up 14.3% or $18.1m).
"Offshore exploration fell 19.7% (or -$156.8m) to $639.9m in the September quarter 2010, while onshore exploration expenditure rose 0.6% (or $1.3m) to $210.5m," the ABS said.
Last month the Australian Bureau of Agriculture and Resource Economics said the $5.7 billion spent on exploration in 2009-10 was the third highest amount on record.
"The Bureau said total exploration expenditure declined for the first time since 2003–04. Lower exploration expenditure reflects, in part, the delaying or slowing of some exploration activity in response to lower commodity prices and cost saving measures which persisted throughout 2009.
“In 2009–10, exploration expenditure on energy minerals declined, as lower expenditure on petroleum and uranium more than offset increased expenditure on coal.
"Petroleum exploration expenditure declined by around 8 per cent to $3.5 billion in 2009–10, although it was still the second highest recorded in Australia’s petroleum industry.
"Exploration expenditure for coal increased by 8 per cent to around $321 million in response to expectations of increasing world coal demand over the medium to longer term.
"Spending on uranium exploration decreased by 9 per cent in 2009–10, as sharp declines in uranium spot prices in recent years have resulted in some exploration activity being postponed.
"With the notable exceptions of copper and gold, exploration expenditure for all other major mineral commodities declined in 2009–10. Expenditure on gold exploration increased by 31 per cent to around $575 million in 2009–10, as higher Australian denominated gold prices encouraged exploration.
"In 2009–10, exploration expenditure on base metals declined by 12 per cent to around $457.2 million, as lower expenditure on silver, lead, zinc and nickel more than offset an increase in copper exploration expenditure. Lower expenditure on base metal exploration is partly attributable to a continuation of cost saving measures, which have affected some small exploration companies, and uncertainty surrounding future commodity price movements.
"Iron ore exploration expenditure declined by around 11 per cent to $524 million in 2009–10. This follows a 31 per cent increase in exploration expenditure in 2008–09," ABARE said.
