The Australian Bureau of Statistics yesterday released figures showing further decreases in the June quarter 2020.
The seasonally adjusted estimate for mineral exploration expenditure fell 6.8% (-$48.3m) to $665.0m in the June quarter 2020. The largest contributor to the fall this quarter was Western Australia (down 7.8%, -$33.3m).
In original terms, mineral exploration expenditure rose 11.9% ($72.7m) to $683.3m in the June quarter 2020. Expenditure on areas of existing deposits rose 17.5% ($67.5m) and expenditure on areas of new deposits rose 2.4% ($5.3m).
The largest decrease by minerals sought came from expenditure on Selected Base Metals (down 4.3%, -$6.0m).
It follows an earlier drop in mineral exploration expenditure for the March 2020 quarter.
The seasonally adjusted estimate for metres drilled fell 13.2% in the June quarter 2020. In original terms, metres drilled rose 10.8%. Drilling in areas of new deposits rose 5.6% and drilling in areas of existing deposits rose 13.7%.
The seasonally adjusted estimate for total petroleum exploration expenditure fell 25.7% (-$76.0m) to $219.4m in the June quarter 2020. Exploration expenditure on all other areas fell 47.0% (-$88.1m) and exploration on production leases rose 11.1% ($12.0m).
The largest contributor to the fall in the seasonally adjusted estimate was Western Australia (down 45.3%, -$68.9m).
The seasonally adjusted estimate for onshore petroleum exploration expenditure fell 0.6% (-$0.9m) to $152.7m in the June quarter 2020. Expenditure on drilling fell 21.7% (-$26.4m) and other onshore petroleum exploration rose 80.8% ($25.6m).
The seasonally adjusted estimate for offshore petroleum exploration expenditure fell 53.0% (-$75.2m) to $66.6m in the June quarter 2020. Expenditure on drilling fell 92.9% (-$35.4m) and other offshore petroleum exploration expenditure fell 38.3% (-$39.7m).
The ABS also reported the suspension of its ‘trend series’, which attempts to measure underlying behaviour in exploration expenditure and metres drilled.
“Due to Covid-19, in the short term this measurement will be significantly affected by changes to regular patterns,” the ABS stated.
“If the trend estimates in this publication were to be calculated without fully accounting for this irregular event, they would likely provide a misleading view of underlying exploration expenditure and metres drilled.
“It may be some time before the underlying trend in exploration expenditure and metres drilled can be accurately estimated. The exploration expenditure and metres drilled trend series has therefore been suspended from March quarter 2020 onwards. The trend series will be reinstated when more certainty emerges in the underlying trend.”
