The Association of Mining and Exploration Companies (AMEC) Chief Executive Warren Pearce says the continued drop in expenditure and drilling on greenfields deposits in Australia is concerning government reporting on the latest data around mining expenditure.
Last week, the Australian Bureau of Statistics (ABS) reported the December quarterly mineral exploration expenditure statistics, showing mineral exploration remained constrained, recording a 2.4% decline in original terms to $992.3 million.
This drop is compared to the September 2024 quarterly which highlighted over $1.7 billion in exploration.
ABS reports annual expenditure for 2024, totalling $3.95 billion, decreased by 7.3% from the previous 12 months which totalled $4.26 billion.
Pearce notes this drop points 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,” the CEO says.
Expenditure on new deposits in the December quarter, totalling $267 million, also decreased by 3.5% to the previous quarter and 26.4% to the previous corresponding period.
Brownfields exploration for the quarter also dipped at $725.6 million, with the full year expenditure almost $100 million lower than 2023.
The ABS data revealed exploration activity across the country during the December quarter was mixed, with New South Wales, Victoria, and Tasmania recording increases in expenditure, against falls in Queensland, New South Wales, Western Australia, and the Northern Territory.
Pearce says activity in almost all jurisdictions were lower compared with the previous corresponding and calendar year periods.
“The ABS data helps illustrate that the industry is still facing considerable headwinds,” he says.
“The trends are undeniable, and the sustained challenges we face are increasingly borne out by the data. The economic imperative around the importance of this industry is well understood by the state and federal governments.”
AMEC is a national association representing over 500 member companies from around Australia. The association’s members are explorers, emerging miners, producers, and a wide range of businesses and service providers working in the resources sector.
Mining.com.au is an official member of AMEC.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
