Australian exploration and devlopment?comments and costs

Abstract

Australian resource exploration is a $180,000,000 p.a. industry; one third of this is spent on petroleum search and the rest goes on hard rock, coal etc. This figure can be expected to increase substantially as business confidence picks up with the likely abatement of the worldwide economic recession. These exploration expenditures lead to yet greater capital investment in mineral and petroleum projects currently amounting to several hundred million dollars per year. Explorers these days must get good value for the exploration dollar. On the energy side successful petroleum exploration is vital to Australia; overseas dependency is patently undesirable economically and politically. On the mineral side exploration is more difficult and costly despite technological advances and the industry finds itself in a profit squeeze. There is a decline in the grades of ore mined; new discoveries are made at increasing depths as the more obvious surface manifestations of ore have been checked; costs rise but productivity and prices do not; ever more capital is required for new mine development.