Exploration spending slows slightly in tough economic conditions

Continuing stable uranium prices, rising costs and an uncertain global nuclear energy sector have combined to dampen spending on uranium exploration slightly during the third quarter of the 2011-12 financial year.

Uranium exploration expenditure remains significant in Western Australia, however, where projects continue to progress towards development as mines.

Australian Bureau of Statistics figures show that uranium companies spent $17.7 million on exploration in WA during the third quarter of the 2011-12 financial year. This compares with $25.9 million expended in the first quarter and $21.3 million in the previous three months to the end of December.

Exploration spending was lower in the Northern Territory ($3.3m) and South Australia ($6.2m), while in Queensland companies spent $2.1 million on uranium exploration in the three months to the end of March.

While the New South Wales Government has changed the law to permit uranium exploration (but not mining) in that State, spending on exploration has not yet been recorded in the official statistics.

Across Australia, uranium companies have now spent $128.9 million so far this financial year searching for and proving up uranium resources.

Uranium Exploration: Australia 2005/06 to 2011/12 *

$A millions

 

(Year)

Queensland

Western Australia

Northern Territory

South Australia

AUSTRALIA

05/06

4.6

2.2

19.1

30.3

56.1

06/07

9.0 (est)

11.2 (est)

30.1

63.8

114.1

07/08

38.1

26.8 (est)

48.7

118

231.5

08/09

29.5(est)

28.6(est)

54.5

72.6

185.3

09/10

22.4 (est.)

55.4

38.6

52.7

169.1

10/11

17.6 (est)

100.7

41.9

53.7

213.9

11/12 (Q3)

9.9(est.)

64.9

25.9

28.3

128.9

 

*Source: ABS, series 8412.0.

(Exploration for uranium is banned in Victoria and is negligible in Tasmania)