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 | Exploration expenditure has declined 6 consecutive quarters to Dec. 1998 from ~$300 million to ~$225 million [Australian Bureau of Statistics]. 25% fall. Decline continues in 1999 and expected to accelerate through 2000. Distribution of alls more impact than 25%.
| Approximately 50% of geologists seeking employment. [Premier of WA's estimate]. Few qualify for unemployment of benefit and are living off savings and/or leaving industry.
| Estimated 350 drill rigs idle throughout Australia, with 70 to 80 in Kalgoorlie alone. 1200 drill crew out of work.
| Assay lab business fell 40% in 1998 and the current prices are severely depressed;
| Unemployment levels in all areas expected to increase in 1999/00 |
ImplicationsTakes on average more than 5 years to find and develop a Gold mine and 10 to 15 years to develop a Base Metal deposit. Current "exploration" expenditure largely confined to "brownfields:" search and development drilling. Little greenfields exploration in progress. 25% fall in expenditure represents ~70% fall in "greenfields" work.
| "Greenfields" exploration is the search for new deposits to replace mined out orebodies. Many of the small producers have only a 2 to 3 years mine life but little or no exploration underway. /since 1997 17 gold mines closed in WA and only 2 opened. |
ConsequencesWA is Australia's largest export state. 72% of WA's exports are mineral products worth $16 billion. To maintain this contribution, need to explore to replace mined out deposits.
| If trend in falling exploration expenditure continues., economic recession inevitable. If mineral output falls 10% then remainder of economy has to increase output 25% to compensate. The decline will not only affect mining industry, but also will seriously damage the whole economy and increase levels of unemployment across the board |
ReasonsHistorically low commodity prices and associated market t sentiment has mad it difficult to generate investment in exploration. This factor alone would have been sufficient to cause an exploration recession, but the problem has been multiplied into the industry's worse crisis in a generation by:
| The lack of a fair, transparent and logical Native Title System Access to the land is not only vitally important to Aboriginal people, it is also vitally important to the Resource industry. It will not help Aborigines or any other social issue facing Australia if the nation's economy is in difficulties. those people who dismiss the lack of a Native Title System as a factor should consider that as exploration expenditure has dropped in Australia, overseas expenditure by Australian based companies has increase to ~$400 million pa [89% of this is greenfields exploration looking for new deposits |
RemediesUnemployment and loss of personnelAverage annual incomes, for taxation purposes of self employed exploration personnel, with highly variable incomes.
Lack of exploration investmentTax incentives: Exploration is R & D and should attract appropriate treatment
Native Title SystemLegislate compensation system and make annual instalments to a trust fund. Pay outs when legitimate nature title holder determine. Exploration can proceed with job.
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1. Start a paper war! This is used with great effect by the Green, that is for geologists to individually send letters to as many politicians as possible. It doesn't matter if the letter is the same as the next person, all letters will be responded to. You can down load letters from the geoscience organisations like ourselves from this website. A list of keys political figures is also available here. You may email as well but possibly not to the same affect.
2. Meet with your State and Federal parliamentary representative to explain the current situation and consequence for the community. You may wish to take along the information from the letters on this website written by your geoscience organisation.
Exercise your democratic rights and tell your politician your concerns! Every individual action adds to the collective action and will yield results.
Good luck
John Williams
Chairman - AGSEAN
The survey results are the AIG's (WA Branch) recommended minimum annual pay scale. Daily rates can be calculated by dividing the annual salary by 225 and multiplying by 1.2 to cover holidays etc. Geologists should negotiate higher salary packages using the minimum cash component as a guide. This should help promote "the professional standing, identity and reputation of geoscientists in Australia"....... "People may also wish to consider that they could be better off by undertaking courses to increase their knowledge base and geoscience skills rather than getting stuck in a job with poor pay."
"Acceptance of lower pay will not increase the demand for geoscientists (as it might for most commodities governed by supply and demand), it only hurts the individual and the profession. With the increased lobbying effort through media articles, the public is also becoming aware the massive unemployed of geoscientists, which no doubt will effect the calibre and numbers of students entering the profession, something the AIG does not want to see happen."
| Cash Component $000 | Graduate | Level 1 (4-6 yrs) | Level 2 (4-8 yrs) | Level 3 (9-12 yrs) | Level 4 (>12 yrs) | Level 5 (>17 yrs) |
| 35-40 | X | - | - | - | - | - |
| 40-45 | - | - | - | - | - | - |
| 45-50 | - | X | - | - | - | - |
| 50-55 | - | - | X | - | - | - |
| 55-60 | - | - | - | X | - | - |
| 60-70 | - | - | - | - | - | - |
| >70 | - | - | - | - | X | - |
| >80 | - | - | - | - | - | X |
The levels of responsibility have the following meaning:
Level 1: works under supervision
Level 2: plans program without detailed supervision
Level 3: shown individual accomplishment; coordinated complex assignments
Level 4: very experienced
Level 5: very experienced
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