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Mining Boom Australia

Is Australia Due For Another Mining Boom?

A repeat of the 2010 mining boom could be on the way for Australia after a net record spending and capital raising on exploration. The final quarter of 2021 recorded a total expenditure of around $974 million alone.

The aforementioned number is in fact double the amount spent on exploration in 2020. Experts have suggested that the country could be heading towards a ‘profitable mining year’. As far as the total capital raising is concerned, it also broke its own records in the fourth quarter of 2021 – 70% more to a whopping $3.17 billion compared to 2020.

Independent research company Austex released the analysis after a survey of 733 resource companies in Australia. The numbers have put some of the locals in a sort of a defensive mode though as mining booms usually result in hikes in prices in general real estate prices in specific. The industry needs to be better prepared to tackle these ‘booms’ and the low points.

Regions such as the Pilbara are now better prepared for the boom though. In the past, it was often seen that the supply could not meet the demands in these boom periods.

It is important to diversify commodities and reduce the reliance of the economy on a single product. With copper and other minerals, amounts of hydrogen are also found in the Pilbara. Tony Simpson, CE of Regional Development Australia’s Pilbara, suggested the aforementioned and said that the region was much better prepared for a mining boom if it happens.

Omicron Boost for Mining Exploration

Amidst all the negative news around the COVID 19 pandemic and the recent Omicron lockdowns and economic hurdles, it has had a seemingly positive impact on mining exploration.

Exploration is a pre-phase of the mining infrastructure and operations and the pandemic provided much time for that. Also, the ‘hope’ of the post-pandemic boom increased capital raising for exploration. The past two years have been fantastic for the industry. With border reopening, it is predicted that more cash will be infused into exploration before the giant mining explosion would hit the Pilbara and other similar places.