It follows the Australian Bureau of Statistics (ABS) publishing the Mineral and Petroleum June 2019 Quarterly Statistics with total mineral exploration expenditure increasing 5.2% ($31.3m) to $629.6m in the quarter.

ABS figures revealed more than $3.5 billion was spent on exploration across the resources and energy sector in 2018-19.

“Strong growth in exploration demonstrates the high confidence investors have in the future of Australia’s resources and energy industry,” said AREEA Head of Policy and Public Affairs, Tom Reid said.

“The resources and energy industry is a source of high-skilled, high-paying jobs and generates significant taxes and royalties to national revenues.

“The ABS figures are overwhelmingly positive for the broader community and highlight how the industry’s growth can continue delivering not only a wide range of diverse and rewarding career opportunities, but a brighter future for all Australians.”

The positive ABS figures follow the welcome announcement of Minister for Resources and Northern Australia Matt Canavan to streamline approval processes for job-generating projects, with a 12-month inquiry by the Productivity Commission into regulation.

“With the right policy settings, the development of Australia’s national resources can continue to drive new discoveries, which will contribute towards today’s high standard of living, employment and building regional communities,” Mr Reid said.

Greenfield mineral exploration expenditure continued another quarter of growth in all states except for Victoria where it fell by $1.6m declining for the third consecutive quarter.

Western Australia recording an outstanding result with $184.3m of exploration expenditure, the second highest on record. In brownfields, mineral exploration expenditure grew in Victoria ($4.3m), Queensland ($19.9m), Western Australia ($35m) and Tasmania ($1.6m), remained the same in NSW, and dropped for South Australia and Northern Territory.

Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies, said it had been a challenging environment for mineral exploration companies, however the statistics are now supporting better growth in the industry.

“Australia needs greater greenfields mineral exploration, and the significant growth in greenfields mineral exploration expenditure right across the country reflects the returning strength of the exploration sector.”

Mining and resources continue to support economic growth

Quarter National Accounts data by the ABS also confirmed mining and resources have been a key contributor to Australia’s economic growth.

The figures show that resources accounted for more than half of total growth in the June quarter in production terms. GDP grew by 0.5 percentage points in the quarter, of which mining contributed 0.3 percentage points.

Mining growth over the year, from June 2018 to June 2019, was a healthy 6.2 per cent (seasonally adjusted), the highest rate of growth of all market sectors and second overall behind health care and social assistance, which grew by 7.9 per cent.

A key driver of GDP growth was strong growth in Australian exports, driven by mining and energy exports.

Exports contributed 0.3 percentage points to GDP growth driven by non-rural goods with continued external demand for mining commodities.

Mining investment rose 2.4 per cent during the quarter, the first increase since June 2018, with mining related machinery and equipment driving the growth.

The ABS found that mining sector had picked up to meet external demand, noting, “Mining GVA (Gross Value Added) rose 3.4 per cent after adverse weather impacts in the previous quarter. Coal and Iron Ore production returned to expected levels. Oil and Gas Extraction drove the growth with increased production from new LNG facilities. The strength in mining production is reflected in increased exports.”

Minister for Resources and Northern Australia Matthew Canavan said the results confirmed the strong export growth results highlighted in the ABS Balance of Payments data released.

“Our world beating resources sector contributed to Australia registering its first current account surplus since 1975. According to the ABS, this was driven by continuing high prices combined with growing volumes of resources exports, particularly the key bulk commodities of liquid natural gas, coal and iron ore,” Minister Canavan said.

“Exports of resources and energy were $76 billion in the June quarter 2019, up an impressive 46 per cent from just two years ago, when they were $52 billion in the June quarter 2017.