Australia Mineral Exploration Spending Rises as Iron Ore and Gold Attract Capital

Iron ore

Australia mineral exploration spending increased strongly in the first quarter, supported by higher investment in iron ore and gold despite weaker spending on copper, nickel, cobalt and coal.

Australia mineral exploration spending rose by 16.3% year on year to A$949.3mn in January-March, according to Australian Bureau of Statistics data. Gold and iron ore remained the two largest categories of exploration expenditure.

Australia mineral exploration spending patterns show a widening divide between commodities. Producers are continuing to invest in iron ore reserve replacement, while weak nickel and cobalt prices are discouraging new exploration.

Iron ore exploration expenditure increased by 4.7% year on year to A$186mn. Gold exploration spending climbed much faster, rising by 53.4% to A$450.9mn.

Iron Ore Investment Stays Strong as Producers Replace Reserves

Iron ore remains one of Australia’s most important mining commodities, and continued exploration spending reflects the need to replace depleting reserves at established operations.

Australia’s Office of the Chief Economist expects domestic iron ore exploration to remain strong as major producers sustain long-term mine life and feed quality.

This is strategically important because Australia remains a major supplier to Asian steelmakers. Maintaining reserve depth is essential for preserving export volumes, mine productivity and Australia’s position in the seaborne iron ore market.

Gold recorded the largest increase in exploration spending. The 53.4% year-on-year rise to A$450.9mn suggests stronger investor appetite for projects offering exposure to high gold prices and more favourable project economics.

Silver, lead and zinc exploration also strengthened, with spending rising by 29.9%. These metals benefit from a combination of precious metal exposure and demand from industrial, infrastructure and energy applications.

Nickel, Cobalt and Coal Lose Exploration Momentum

Nickel and cobalt exploration spending fell by 42.7% year on year, reflecting persistent weakness in global nickel markets and deteriorating economics for Australian producers.

The Office of the Chief Economist expects nickel prices to remain under pressure through 2027 because of continuing global surpluses. Weak pricing has already reduced Australian mine output and discouraged investment in new resources.

Copper exploration spending also declined by 13.1%. This contrasts with copper’s stronger long-term demand outlook and shows that high development costs, permitting risk and competition for capital can still limit exploration despite positive structural demand.

Coal exploration expenditure fell by 22.7% to A$43.2mn. Policy and cost pressures are reinforcing the decline.

New South Wales stopped issuing permits for greenfield thermal coal developments in March 2026, while high royalty rates in Queensland may also be discouraging investment in coking coal exploration.

The result is a more selective Australian exploration market. Capital is flowing toward commodities with stronger pricing, established infrastructure and clearer long-term economics, while weaker or policy-constrained sectors are losing investment.

The Metalnomist Commentary

Australia’s exploration data show that capital is becoming increasingly selective even within strategic minerals. Strong iron ore and gold spending contrasts sharply with nickel and cobalt, where weak economics are overriding long-term critical minerals ambitions.