Any geoscientist working in mineral exploration in Australia over the past few years will tell you that the sector has been doing it tough.
Junior explorers have experienced difficulties raising capital. There appears to have not been a lot of mid-tier to major company interest in exploration in recent years, with a few notable exceptions. The industry as a whole has faced a growing burden associated with gaining access to land in the form of long lead times between applying for exploration licences and having them granted, and a mountain of red tape associated with permitting for even very low-impact exploration activities.
Australian Bureau of Statistics (ABS) mineral exploration expenditure statistics, released quarterly, and Australian geoscientist employment survey results, compiled by AIG since 2009, have recorded evidence of declining investment in mineral exploration in Australia, with consequences for discovery, development and retention of geoscientists with essential specialised skills, and the economic benefits experienced by the broader community especially in rural and remote areas.
The finger of blame is frequently pointed at the Federal Government as the ultimate steward of Australia’s economy. Land and natural resource management, however, are state responsibilities. Evidence suggests that different states are discharging these responsibilities with varying effect and success.
Land under exploration title in Australia
The proportion of each Australian state held under some form of exploration title has fallen steadily since 2011 according to information compiled by Doug Brewster, a Brisbane based AIG member.
The chart shows steady decline in the proportion of each state held under exploration title. The rate of decrease has been greatest in New South Wales where the overall rate of decline has been almost double that evident in the other states, despite a recent slowing.
The important feature of this chart is that every state has experienced a decline in the area under exploration between 2011 and early (February) 2017 and that no end to, or even a significant slowing in the downward trend is in sight except for the Northern Territory in recent times). The similarities in the rates of decline in each state is hard to conceive as being a coincidence, but the reason for this is considered to be elusive.
The more populous states are, by some, considered to create a greater compliance burden for explorers and, in doing so, discourage exploration.
How is Australia perceived as a destination for exploration investment?
Canada’s Fraser Institute has been conducting an annual survey of mining companies since 1997. One of the parameters derived from the survey responses is a Policy Perception Index (PPI). While geologic and economic considerations are important factors in mineral exploration, a region’s policy climate is also an important investment consideration. The PPI measures the overall policy attractiveness of the jurisdictions covered by each survey. The index is based on survey responses to policy factors that a affect investment decisions including:
- uncertainty concerning the administration of current regulations,
- environmental regulations,
- regulatory duplication,
- the legal system and taxation regime,
- uncertainty concerning protected areas and disputed land claims,
- infrastructure,
- socioeconomic and community development conditions,
- trade barriers,
- political stability,
- labour regulations,
- quality of the geological database,
- security, and
- labour and skills availability.
All of these, with the exception, perhaps, of trade barriers and security, are areas of State government responsibility.
By the Australian Institute of Neuroscientists