Australia Yearbook - 2001

686 Year Book Australia 2001
17.9 PRIVATE PETROLEUM EXPLORATION EXPENDITURE
1994–95
1995–96
1996–97
1997–98
1998–99
$m
$m
$m
$m
$m
Onshore 170.8 174.8 251.9 232.2 182.3
Offshore 511.7 550.3 601.0 748.9 685.4
Total 682.5 725.1 853.0 981.2 867.7
Source: Mineral And Petroleum Exploration, Australia (8412.0).
Petroleum exploration expenditure
Total private petroleum exploration expenditure
was $868m in 1998–99 (table 17.9). This was
27% higher than in 1994–95. Offshore exploration
expenditure contributed the largest increase
between 1994–95 and 1998–99, up $174m (34%)
to $685m, while onshore exploration expenditure
increased by $12m (7%) to $182m. However,
expenditure on both types of exploration fell in
1998–99, onshore exploration by 21% and
offshore exploration by 8%, resulting in an overall
fall of 12% over 1997–98 expenditure.
Administrative and financial
arrangements
The 2000 edition of Year Book Australia contains
details of various administrative arrangements
related to mining and mineral exploration
activities. Additional information covering pricing
and taxation issues for petroleum are also
covered there.
Mineral rights
Mineral rights in Australia are held by the State
and Territory Governments, and the granting of
exploration and mining titles is administered by
them under the respective State or Territory
legislation. The Commonwealth Government
holds rights to minerals on Australia’s continental
shelf beyond coastal waters of the States and the
Northern Territory, and to certain prescribed
substances in the Northern Territory, within the
meaning of the Atomic Energy Act (principally
uranium). The Commonwealth Government has
constitutional powers with respect to
international trade, customs and excise, taxation
and foreign investment.
Mineral royalties
Mineral resources are owned by the Crown in
Australia, either by the State and Territory
Governments within their borders (and up to
three nautical miles offshore), or by the
Commonwealth Government in offshore areas
outside the three nautical mile limit.
Accordingly, royalties are collected by State and
Territory Governments for mining onshore and
up to three nautical miles offshore, and by the
Commonwealth outside that limit.
State royalties regulations vary in regard to types
of royalties, rates levied and those commodities
subject to royalties.
In recent years, some State Governments have
negotiated special royalty arrangements with
companies which are seeking mineral leases for
large-scale developments. These royalty rates may
vary, depending on whether production is for
export or for domestic processing. Examples of
this type of royalty agreement are the Argyle
Project in Western Australia and the Olympic
Dam mine in South Australia.
Administrative arrangements
The Commonwealth Minister for Industry,
Science and Resources has portfolio
responsibility for national energy policy matters,
including the commercial development of
hydrocarbon fuels and minerals in the Australian
offshore area. The Department of Industry,
Science and Resources provides support for a
number of advisory bodies including the
Australian and New Zealand Minerals and Energy
Council, and the National Oil Supplies Emergency
Committee.
The Department is also responsible for the
implementation of action required from
Australia’s membership of the International
Energy Agency and for the national system of
accounting for control of nuclear materials under
Australia’s Agreement with the International
Atomic Energy Agency.
Research
Research into exploration, mining, ore dressing
and metallurgy is conducted by government
bodies, universities, private enterprise, and by the
combined efforts of all these. A summary of the
main organisations and their functions follows.