A NICKEL exploration outlay of $16 million helped propel the State’s mineral exploration expenditure during the 2004 September quarter to its highest levels in six years, according to the Australian Bureau of Statistics.
The ABS says Western Aust-ralia’s exploration expenditure trend continues to grow strongly, rising by $11.3 million, or 8.7 per cent, to $141.7 million in the quarter.
Quarterly growth averaged 8.6 per cent since the March quarter.
In original terms, the ABS says WA’s expenditure totalled $147.9 million for the quarter, up almost $40 million, or 36.3 per cent on the 2003 September quarter.
The increased expenditure on nickel and cobalt exploration was fuelled by strong demand from north Asian and European stainless steel producers, which drove prices higher over the quarter.
Gold exploration also grew over the period, up $5.9 million or 8.7 per cent, as did petroleum exploration expenditure, up 2.4 per cent to $182 million.
Local resource information group, Intierra said the exploration industry was in a rare position – perhaps a 50- to 100-year event – with almost all the commodities in high demand and enjoying elevated prices fuelling increased expenditure
“Apart from the usual suspects – gold, copper, lead-zinc, nickel – many other metals such as tin, silver, uranium, rare earths, and bulk commodities, notably iron ore and coal, are all back on the hunting list for explorers,” Intierra marketing director Mike Kellow said.
Intierra said exploration spending by Australian-listed explorers during the quarter was up 20 per cent on the previous quarter to $127 million, well exceeding budget predictions of $118 million.
This was also more than double the amount spent in the corres-ponding 2003 quarter.
Despite the increased expenditure, explorers’ cash-at-hand also improved, from a total of $767 million in June 2004, to $948 million during the September quarter.
Mr Kellow said the increased cash indicated the sector was able to attract significant levels of investment at present, however the trend would only continue if the exploration industry started “putting runs on the board”.
