Petroleum exploration rises, mineral exploration falls

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By Leith van Onselen

The Australian Bureau of Statistics (ABS) released Mineral & Petroleum Exploration data, which revealed a continued easing in mineral exploration expenditure following the peak levels recorded in the March quarter of 2012. By contrast, petroleum exploration expenditure rose to an all-time high over the quarter.

Nationally, expenditure on minerals exploration fell by a seasonally-adjusted -$146.9 (-14.7%) million in the September quarter, which followed the June quarter’s -$65.7 million (-6.2%) fall. The fall was driven by Western Australia, where mineral exploration expenditure fell by -$108.7 million or -19.0%. Queensland also experienced major cuts to mineral exploration expenditure, falling -$27.3 million or -12.1% over the quarter (see below chart).

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The falls in mineral exploration expenditure was broad-based across the various components. Iron ore exploration fell by -$55.7 million (-16.6%) over the quarter, selected base metals by -$52.7 million (-23.9%), coal by -$41.1 million (-19.4%), and gold by -$20.6 million (-9.6%):

In contrast to the decline in mineral exploration, petroleum exploration expenditure increased to a record seasonally-adjusted high of $1,100.4 million in the September quarter of 2012, up $227.5 million (26.1%) on the June quarter, with Western Australia accounting for 70% of the total (see next chart).

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Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.