Latest Australian Bureau of Statistics figures show companies particularly targeted rare earth elements cobalt, graphite, halloysite and manganese, as exploration spending surged 34 per cent to $122 million, up from $91.2 million last financial year.

State Energy and Mining Minister Tom Koutsantonis said the exploration figures “show the sector is primed for growth”.

“Mineral explorers as well as conventional and renewable energy producers are investing in SA, creating jobs and pathways for growth,” he said.

“A solid exploration pipeline and investment in emerging innovations that expedite the search for our underground resources, coupled with clean energy technology and skills development are integral to the state’s future.”

ABS numbers showed a slight fall in spending on petroleum exploration for the June quarter in South Australia to $15.4 million but this was expected to turn around as activity grows in the state’s Cooper Basin.

An additional rig has arrived in the basin this quarter to deliver more gas to market while about 100 petroleum wells are expected to be drilled in the 2022 calendar year, compared to 54 wells drilled during last year.

South Australian Chamber of Mines & Energy (SACOME) chief executive officer Rebecca Knol said the strong growth in exploration spending was testament to the resource sector’s resilience.

SACOME chief executive officer Rebecca Knol.

“Exploration is critical to ensuring a future pipeline of resource projects in South Australia and is key to increasing the resources sector’s already-significant economic contribution to the state,” she said.

The figures follow global mining giant BHP reporting record annual profits with its underlying earnings of $A57.8 billion boosted by higher copper prices and a strong operational finish to the financial year by Olympic Dam in South Australia.

BHP is now also working through drill data from its high-potential copper site at Oak Dam in northern SA.

Meanwhile, Oz minerals drilled 6.2km at its Prominent Hill copper, silver, and gold mine in north west South Australia and conducted surveys to prepare for exploratory drilling at its Carrapateena copper mine in the Far North of the state.

Nationally, total mineral exploration expenditure rose $44.5 million to $1,026.9 million with iron ore recording the largest rise, up 44.1 per cent or $61.5 million to $201 million.

Knol said exploration incentives such as the State Government’s Accelerated Discovery Initiative contributes to the uplift in mineral exploration across the state.

“Exploration incentives are a proven economic multiplier – for every $1 million offered in incentives, an additional $23 million in benefits is returned,” she said.

“SACOME continues to advocate for ongoing funding and expansion of the ADI as a means of maintaining these expenditure trends and support further discovery and diversification of the state’s resources sector.”

Twelve SACOME member companies contribute $5.9 billion to the state economy, the equivalent to 5.3 per cent of South Australia’s gross state product or $1 in every $20 in the state economy, Knol said.

SACOME figures showed the sector supports 24,895 workers (1 in 33 jobs) and contributes $5.7 billion in exports, approximately 50 per cent of the state’s total exports.