Australia ‘should be ramping up exploration activity’: AMEC

The Australian Bureau of Statistics has released the mineral exploration expenditure statistics for the December quarter, highlighting an increase in gold and copper exploration in Western Australia.

According to the figures, WA saw increased gold exploration and a return to historic copper exploration levels at close to $50 million, up 27 per cent from the previous quarter.

Gold exploration expenditure rose significantly in Tasmania (by 70 per cent) and South Australia (by 69 per cent), and also grew in New South Wales (by 18 per cent) and Victoria (by 11 per cent).

Despite this, overall mineral exploration expenditure has stalled, recording a 2.4 per cent decrease ($24.4 million) to $992.3 million compared to the September 2024 quarter.

Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce noted that while activity in some jurisdictions was lower than previous years, the mining industry remains vital to Australia’s economic future.

“The trends are undeniable, and the sustained challenges we face are increasingly borne out by the data,” Pearce said.

“The economic imperative around the importance of this industry is well understood by the State and Federal Governments.”

Pearce called on both levels of government to provide greater support as the demand for critical minerals is expected to rise with the global energy transition.

“Despite a strong end to the (2024) calendar year, activity was down on the September and previous December quarters,” Pearce said.

“Particularly concerning is the continuing drop in expenditure and drilling on greenfields deposits, pointing towards a level of caution and uncertainty around market sentiment for – and investments in – new projects.

“This comes at a time when Australia should be ramping up activity across all commodities and all jurisdictions to meet global demand and energy transition objectives.”

Greenfields exploration expenditure for the December quarter was $267 million, down 3.5 per cent from the previous quarter.

“It will not be possible to develop and secure our critical minerals opportunities or ensure a ‘Future Made in Australia’ without a concerted effort and commitment from all our industry stakeholders,” Pierce said.