Australian Minerals Exploration Hits a New High

The China-driven commodities boom is finally flowing through to minerals and energy exploration, according to the Australian Bureau of Agricultural and Resource Economics (ABARE).

Minerals and energy exploration spending has reached A$4bn for the financial year ending July 2007, the highest in real terms since the eighties commodities boom.

ABARE say new capital spending in the mining industry has increased from A$18.6bn in 2005–6 to almost A$23bn this financial year.

Exploration in iron spending this financial year was estimated to have doubled to A$320m, while gold exploration saw a 25% increase from previous years hitting A$515m over 2006–7.

ABARE data also shows Brownfield exploration – exploration around existing or known deposits – has increased to a bigger proportion of total exploration spending, due in part to reassessment of existing projects in light of higher prices.

Total spending is forecast to hit A$30bn in 2007–8.The figures are good news for Australian companies concerned about losing their share of world markets for key minerals and energy commodities.