australia's identified mineral resources 2004 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2004
FIGURE 5. Distribution of world mineral exploration budgets, 2003
(Source: Metals Economics Group, Canada).
According to the MEG data, 61% of 2003 exploration budgets for Australian-based companies were
directed to exploration in Australia. The MEG survey included 233 companies with exploration
budgets of more than US$100 000 that were exploring in Australia, an increase of 12 over 2002.
Budgets for Australian exploration were directed mainly to gold (US$209.3 million), base metals
(US$83.5 million) and diamonds (US$15.9 million). Australian grassroots exploration budgets are
dominated by the search for gold (55% of total budgets).
Outlook for Exploration
Australian mineral exports are at near record levels with the Australian Bureau of Agricultural and
Resource Economics (ABARE) predicting export earnings from Australia’s mineral resources to rise
by 11% to $58.3 billion in 2004–05. ABARE expects world consumption of all major mineral (and
energy) commodities to increase in 2004 and they also expect prices to rise further but with
downward pressure in 2005. These provide a firm underpinning for exploration and suggest an
improved outlook for exploration.
As reported above, both world and domestic mineral exploration levels in 2002–03 have arrested a
falling trend in recent years. In addition, this year has seen only limited mergers and acquisitions of
mining companies compared with the past few years. The higher metal prices, particularly for the
base metals and the sustained higher gold price levels are conducive to greater exploration activity in
2004. Coupled with the improved price outlook, the anticipated growth in demand for commodities,
especially from China, provides a sound fundamental footing for exploration to grow in the short to
medium term, which will be strengthened given implementation of recommendations from the
Minerals Exploration Action Agenda.
Offshore Mineral Exploration in
Commonwealth Waters
The Commonwealth Offshore Minerals Act 1994 provides the statutory framework for the exploration
for, and the production of minerals, other than petroleum on Australia’s continental shelf three
nautical miles beyond the territorial baseline of the States and Territories. The administration is shared
between the Commonwealth and the States and the Northern Territory. The Joint Authority consists
of the relevant Commonwealth minister and State/NT minister and is responsible for major decisions
relating to titles, such as grants, refusals, etc. The State/NT minister is called the Designated Authority
and is responsible for the normal day-to-day administration of the Commonwealth legislation.
Applications for a mineral exploration licence (MEL) are made to the Designated Authority.
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