MINING EXPLORATION UNHAMPERED BY NEGATIVE GDP

Despite a decline in economic growth, investor interest in mineral exploration has picked up.

According to the latest Australian Bureau of Statistics (ABS) data, Australia’s economy shrunk 0.5 per cent in the September 2016 quarter.

This was a result of contractions in several areas including new building investment and public spending.

Although many industries fell during the September period, Agriculture surged 7.5 per cent and mining remained steady.

MINING EXPLORATION INVESTMENT RISING

Meanwhile, recent ABS data on spending on resources exploration paints a much prettier picture. Seasonally adjusted total mineral exploration expenditure in the September period rose 1 per cent (A$3.5 million) to A$351.3 million, with higher investment in Queensland contributing to the rise.

In line with this was an almost 1 per cent increase in overall metres drilled during the period.

COMMODITIES

Compared to the June 2016 quarter, exploration investment rose in the September period for most commodities including: copper (8 per cent); nickel, cobalt (16 per cent); gold (1.4 percent); iron ore (4 per cent); mineral sands (55 per cent); uranium (14 per cent); and coal (23 per cent).

Mining Exploration unhampered by negative GDP

MINING STATES

During the September period, exploration spending in Queensland swelled to A$50.5 million – 14 per cent higher than the previous June quarter, which was A$44.2 million.

Investment in exploration in Western Australia was up 2.5 per cent to A$228.1 million compared to A$222.5 million in the June 2016 period.

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