South Australia (SA) has reversed the downturn in mineral exploration spending — rising by 16.1% in the June quarter.
Australian Bureau of Statistics data shows total spending on mineral exploration rising to $41.8 million, up from $36 million during the previous three-month period, with combined minerals and petroleum expenditure for this financial year is $332.9 million.
Engineering construction activity in the state has also surged 35% in South Australia in 2008/09, according to BIS Shrapnel’s recently released Engineering Construction in Australia, 2008/09 — 2022/23 report.
According to the report, the surge was driven partly by electricity, mining and heavy industry construction (Prominent Hill and Jacinta-Ambrosia projects).
According to BIS Shrapnel, accelerated rail projects and work on the Adelaide Desalination Plant will help drive engineering construction activity higher over next two years, with the outlook beyond that very much dependent on the timing of the proposed Olympic Dam expansion.
Australia’s total mineral exploration expenditure rose by $80 million or 19.8% in the June quarter.
SA was recently named the 5th best ranked mining jurisdiction in the world for resource investment in the Resource Stocks’ 2009 World Risk Survey.
Minister for Mineral Resources Development Paul Holloway said, “Unlike other states, South Australia has not experienced any mine closures as a result of the global financial crisis and mining projects are continuing to proceed toward development and full operation.”
“During the next 12 months, a further four to five mines are expected to be approved in South Australia, building on the 11 mines currently operating in this State.”