Exploration Spending Increased in Australia During 2005-2006

A recent report in Minfo, a periodical published by the New South Wales Department of Primary Industries, indicated that national exploration spending in Australia during 2005-2006 rose by 20.6% to a record A$1.240 billion. Spending increased in all jurisdictions except Western Australia where a 3% drop occurred, but Western Australia remained dominant attracting A$590.2 million (47.6% of total). Next highest spending was in Queensland with a record A$218.8 million. South Australia recorded A$146.5 million, Victoria rose to A$74.1 million and Tasmania nearly tripled to $22.6 million. The Northern Territory also increased to A$74.7 million.

New South Wales reached a record level of investment in mineral exploration in 2005-2006, according to figures released by the Australian Bureau of Statistics (ABS). Private mineral exploration expenditure in NSW rose 55% over the previous year to $114 million, representing 9.2% of total national exploration spending compared with 7.6% previously.

New South Wales was the third largest mining state, with NSW mineral production in the 2005-06 period reached an all-time record of A$11.7 billion. ABS figures also indicate the NSW 2006-07 exploration expenditure figures are on track to exceed A$150 million.

According to the report, a A$30-million, seven-year Exploration NSW initiative generated increased exploration interest in NSW, setting the scene for an increase in exploration and development activity. In its first six years, the A$28.5 million invested by government produced over $500 million of private sector exploration, $1.8 billion in royalties and $50 billion in mineral production. Consequently, in 2006 a new exploration promotion initiative known as New Frontiers was announced to follow on from the highly successful program.

NSW is also seeing the entry of major international and Australian companies into exploration in the state, generally in partnerships with local explorers. For example Golden Cross Resources has joint ventures with nickel producer CVRD-lnco and the Japan Oil, Gas and Metals National Corp., to search for nickel, platinum and copper in the Broken Hill area. Newmont Australia Ltd. has committed to joint ventures with Alkane Resources in the central west and with Malachite Resources at its Tooloom project in northeastern NSW.