Author Description

This study attempts to provide an understanding of the economic realities of mineral exploration in Australia by evaluating Australia's historical experience in the context of current economic and technological conditions. The impact of current Australian taxation policy on the economic potential of exploration is also assessed, as are the competitive royalty positions of the seven political jurisdictions within Australia. The study focuses on Australian base metal, gold, and nickel exploration during 1955-91. Economic assessments are based on A$9.5 billion of expenditures made during the period and current outlook estimates for 347 deposits discovered and delineated as a result of those expenditures. The study results provide a detailed picture of exploration economics in Australia, including the short-term production characteristics of the economic deposits discovered, the medium-term return from exploration success as viewed from the start of mine development, and the long-term economic potential from the start of exploration. Initial evaluations are made on a potential value or before-tax basis; these are then overlaid by Australian taxation and royalty regimes to evaluate the nature of these appraisals in terms of after-tax investment incentive.