Greenfield exploration in Australia picks up

The country’s total exploration spending, however, continued to fall, dropping 3% or A$12 million, to A$382 million in the December quarter. Exploration on areas of new deposits fell 7.8%, or A$9 million, and expenditure on areas of existing deposits fell by 1.1%, or A$3 million.

“In what is traditionally a negative quarter for mineral exploration, this year we have seen an increase in metres drilled driven by exploration on new deposits, ,” Simon Bennison, chief executive officer at the Association of Mining and Exploration Companies, said in an e-mailed statement.

In Bennison’s opinion, the increase in greenfields mineral exploration highlights the Federal Government’s Exploration Development Incentive (EDI), effective since July last year, is having “a positive impact” on greenfields mineral exploration as intended.

“AMEC has been working with the Australian Taxation Office, Treasury and the Department of Industry and Science to review the operation of the EDI to make it more effective for explorers and investors,” he noted.

In terms of oil-related exploration, expenditure decreased 22.5%, or A$132.1 million, to A$455.5 million in the December quarter, with Western Australia reporting the largest fall at 17.6%, or A$70.5 million.