Exploration spending by Australian mining firms quadruples in last year: survey

4 September 2013 (Last Updated September 4th, 2013 18:30)

Australian mining companies' spending on exploration has quadrupled in the past year, according to a survey by GDS International.

Coal mine

Australian mining companies' spending on exploration has quadrupled in the past year, according to a survey by GDS International.

The survey report says that spending on exploration by companies has surged to 45% of total budgets in May 2013 from just 11% in April 2012.

The survey also reports that investment in infrastructure and equipment has declined by 50% during the past year.

Investment in equipment declined to just 7% in May 2013 from 16% in April 2012, while infrastructure spending also fell to 7% from 14%.

Despite an industry-wide slowdown, Australian mining companies are still exploring new opportunities.

The survey of 192 mining industry professionals from the ANZ region was conducted as a part of GDS International's Next Generation Mining Summit planning process.

GDS International said findings are based on delegate spending priority surveys from March 2012, October 2012 and May 2013.

Investment in equipment declined to just 7% in May 2013 from 16% in April 2012, while infrastructure spending also fell to 7% from 14%.

The companies' spending on recruitment and training decreased to just 3% from about 6% as the impact of the slowdown started to bite and few firms looked to increase the size of their workforce, the survey revealed.

GDS International regional director APAC Nick Roberts said, "Despite ongoing economic challenges, these results show that the mining industry in ANZ is still in excellent health and firms are actively looking for new growth opportunities. It's an incredibly exciting industry to be involved in."


Image: The survey found that spending on exploration by companies have surged to 45% of total budgets in May 2013 from just 11% in April 2012. Photo: Courtesy of FreeDigitalPhotos.net.