Anyone remember the good old days ? ----------------------------------------------------------- AUSTRALIAN MINERAL EXPLORATION: ANALYSIS AND IMPLICATIONS. A.L. Jaques (FAusIMM) and M.B. Huleatt - Geoscience Australia. Published in the Australasian Institute of Mining and Metallurgy. Bulletin No.1 Jan/Feb 2002, 45-52.
Australian mineral exploration is at a 20 year low in real terms. After doubling in line with global exploration activity during the 1990s exploration expenditure peaked in 1996/97 and fell sharply. The current decline differs from previous downturns in exploration that have occurred as part of the economic cycle as it is accompanied by major structural changes in the industry.
Forces resulting in these changes are strongly inter-related and include cost cutting to stay competitive in the face of low (declining) commodity prices, demand for greater return on shareholder investment, consolidation in response to globalisation, intense competition for risk capital (particularly for junior companies) from new sources, loss of confidence in exploration as an economic activity following declining rates of discovery, and land access issues. These factors have changed and continue to change the face of the industry.
Australian mineral exploration expenditure 1991-2001 Australian Bureau of Statistics (ABS) quarterly survey data show that Australian mineral exploration expenditure approximately doubled in the early to mid-1990s, peaking in 1996/97 (Figure 1). Most of the increase was in gold, but there were also modest increases in expenditures on base metals, coal, iron ore and diamonds in this period.
Exploration spending post the 1996/97 peak has fallen sharply (Figure 1) and in the 2000/2001 ABS survey was $683.3 million. This is down 40.5% on the 1996/97 peak but up slightly (1%) on 1999/2000, and is the first increase since 1996/97. In constant 2000-2001 dollars exploration is at a 20 year low (Figure 1).
