The mining and oil industries are back looking for new resources or drilling out existing deposits as global prices for commodities such as copper, nickel, lead, zinc, iron ore and gold continue to firm. Only oil and gas prices have not risen in the past month.
Figures released yesterday confirm that the exploration activity for the Australian resources sector is on the rise, with a 27% jump in metres drilled in the three months to June from a year earlier and 23% plus rise in spending in the same period.
Australian Bureau of Statistics data yesterday showed the trend estimate of total mineral exploration expenditure increased 6.6% (or $26.4 million) to $428.5 million in the June quarter 2017, the highest since the third quarter of calendar 2015.
That was up 23.5% on the June quarter of last year, thanks to higher spending by companies proving out iron ore, gold, copper, nickel, lithium, lead and zinc deposits. Oi exploration spending could only rise less than 1% in the same period.
The largest contributor to the increase in the trend estimate for metals this quarter was Western Australia (up 6.5%, or $17.4 million). On a seasonally basis, the estimate for mineral exploration expenditure was up 9.9% (or just over $39 million) to $437.7 million in the June quarter 2017. WA was again the driver with a 5.3% rise in the three months.
The ABS said that in original terms, mineral exploration expenditure rose 31.8% (or $107.3 million) to $444.9 million in the June quarter 2017. Exploration on areas of new deposits jumped 32.1% (or $33 million) and expenditure on areas of existing deposits rose 31.6% (or $74 million).
In original terms, the largest increase by minerals sought came from expenditure on selected base metals up 73.0%, or nearly $40 million.
And resource companies drilled more metres in the quarter. The ABS said the trend estimate for metres drilled rose 6.9% in the June quarter 2017 to be 27.0% higher than the June quarter 2016 estimate.
The seasonally adjusted estimate for metres drilled rose 5.2% in the June quarter 2017, while original terms, metres drilled rose 44.5%. Drilling in areas of new deposits rose 41.1% and drilling in areas of existing deposits rose 44.5%.
The ABS said the trend estimate for total petroleum exploration expenditure rose 0.9% (or $3.0 million) to $345.8 million in the June quarter 2017. Exploration expenditure on production leases rose 35.1% ($14.5 million) and exploration expenditure on all other areas fell 3.6% (-$10.8 million).
The largest contributor to the increase in the trend estimate was Northern Territory (up 19.3%, or $20.6 million) and the largest contributor to the rise in the seasonally adjusted estimate was Queensland (up 24.3%, $11.1 million).
The trend estimate for onshore petroleum exploration expenditure rose 12.9% ($15.0 million) to $131.6 million in the June quarter 2017. Expenditure on drilling rose 19.7% ($13.4 million) and other onshore petroleum exploration expenditure rose 3.1% ($1.5 million).
The trend estimate for offshore petroleum exploration expenditure fell 4.8% (-$10.9 million) to $215.2 million in the June quarter 2017. Expenditure on drilling rose 2.8% ($3.7 million) and other offshore petroleum exploration expenditure fell 15.4% (-$14.7 million).
