Australian exploration investment declined sharply in Q1

According to Mining Weekly, the Australian Bureau of Statistics (ABS) released mineral exploration data for Q1 2025, showing declines both quarter-on-quarter (QoQ) and year-on-year (YoY).

ABS data indicates that mineral exploration investment in Australia fell by 18.4% QoQ in Q1, a decrease of 181 million Australian dollars, and by 11.5% YoY, a decrease of 105 million Australian dollars.

Regarding the above data released by ABS, Warren Pearce, President of the Association of Mining & Exploration Companies (AMEC), believes that this trend aligns with what its member companies have been saying.

"Exploration has never faced such significant obstacles, and it is extremely difficult for companies to raise funds."

"We keep hearing how important the mining industry is to the national economy, but we haven't seen any substantive support."

He emphasized that reforms are necessary to reverse this trend. "From land use and environmental approvals to coexistence with the renewable energy sector, these issues were once distant but are now upon us."

Quarterly exploration investment peaked at 1 billion Australian dollars in 2023 but fell to 804.7 million Australian dollars in Q1 2025.

Drilling activities also declined. Greenfield drilling fell by 21.9% QoQ, with total footage decreasing by 11.6%.

Western Australia, the engine of Australia's mineral exploration, experienced the largest decline. Mineral exploration investment in the state fell from 715 million Australian dollars in Q3 2023 to 530.6 million Australian dollars, a QoQ decline of 19.5% and a YoY decline of 4%. Copper, nickel, and base metals were most affected.

Exploration investment in the Northern Territory was 22.5 million Australian dollars, the lowest level since Q2 2017. Greenfield exploration investment in the Northern Territory fell by 49% QoQ and 54% YoY, from 36.6 million Australian dollars in Q4 2023 to only 7.3 million Australian dollars in Q1 2025.

The trend in Queensland was consistent with the national trend, with exploration investment falling from 165.9 million Australian dollars in Q4 2023 to 104.7 million Australian dollars. The rainy season in the state, including severe flooding, was the main reason for the decline.

Over the past year and a half, exploration investment in South Australia decreased by 28 million Australian dollars, from 79.5 million Australian dollars in Q4 2023 to 51.7 million Australian dollars in Q1 2025.

While most regions experienced declines, the situations in New South Wales and Victoria were different. Exploration investment in New South Wales increased by 6.1% in Q1, and in Victoria by 18.1%, mainly due to enhanced gold and mineral sands exploration activities.

"Tasmania showed relatively stable performance, with a 2% increase to 10 million Australian dollars. However, on an annualized basis, this represents a 33% increase."