Western Australia is currently experiencing a significant surge in mineral exploration, with figures revealing a substantial increase in spending. The Australian Bureau of Statistics (ABS) has reported that $1.57 billion was invested in exploration activities within Western Australia alone for the 2025-26 financial year. This represents a notable jump from the $1.03 billion spent in the previous financial year, underscoring a robust period of activity in the state’s resource sector.

Record Spending Fuels Exploration Boom

The surge in exploration expenditure coincides with the Australian dollar gold price reaching an all-time high of $7,688 per ounce in January, although it later settled to trade around $6,236 per ounce. Overall, Australia saw $4.27 billion dedicated to mineral exploration in the 2025-26 financial year, with gold dominating this investment. Approximately $1.93 billion of the national total was specifically allocated to gold exploration. Within Western Australia, gold exploration accounted for $1.57 billion of the state’s total $2.99 billion mineral exploration spend. The June quarter of the 2025-26 financial year also set a record, with $461.1 million invested in exploration within WA.

Topdrill Sees Unprecedented Demand

In the heartland of Western Australia’s goldfields, companies like Kalgoorlie-based Topdrill are witnessing the tangible effects of this exploration boom. The drilling company, founded 20 years ago by Tim Topham with a single drill rig and two employees, has experienced what its founder describes as “unprecedented demand.” Topdrill now ranks among Australia’s largest drilling contractors, employing over 550 people and preparing to take delivery of its 43rd drill rig.

Tim Topham, while hesitant to use the term “boom,” acknowledges the exceptional level of activity. “We’re seeing the flow-on effects of global economic factors and the gold price surge — it’s something that’s very real,” he stated. “I hate the word ‘boom,’ but this period of buoyancy has been really elevated. It’s a pretty exciting time.”

Topdrill’s workload is overwhelmingly driven by gold exploration, which constitutes 95 percent of its business. The company has observed a significant shift in operational patterns. Historically, work would typically slow down over the Christmas period, resuming momentum around February. However, for the past two to three years, drilling has continued consistently through the Christmas and New Year holidays, indicating sustained and high demand throughout the year.

Industry Concerns Amidst Growth

Despite the strong exploration figures, the Association of Mining and Exploration Companies (AMEC) has voiced concerns regarding proposed reforms to capital gains tax. AMEC chief executive Warren Pearce warned that these changes could potentially divert investment away from Australia and stifle greenfields exploration. He highlighted the sector’s reliance on retail investors, suggesting that future capital raisings might struggle to attract the necessary funding if these reforms are implemented.

Federal Resources Minister Madeleine King, however, expressed a different perspective, emphasizing the government’s significant investments in Geoscience Australia and critical minerals. “No government in Australia has ever done more for the resources sector,” Minister King asserted. “I think exploration is in a very good space in Australia.”

Navigating Market Fluctuations: Drilling-for-Equity

Business owners like Tim Topham maintain a forward-looking approach, even amidst the current high demand. Topdrill has previously engaged in “drilling-for-equity” arrangements, where the company accepts shares in a client’s mining venture instead of immediate cash payment. This strategy, while potentially highly lucrative if a significant discovery is made, also serves as a crucial tool for maintaining operational continuity during market downturns.

“It’s a tool we’ve engaged with to keep our rigs busy when the market has changed,” Mr. Topham explained. “The traditional model is to lay staff off in those tougher times, so drilling-for-equity has been an important initiative to keep the rigs spinning, and we’ve been involved in some great discoveries through that.” This approach demonstrates adaptability and a commitment to sustaining operations and employment within the exploration sector, even as market conditions evolve.

Conclusion

The latest figures from the ABS paint a clear picture of a thriving gold exploration sector in Western Australia, marked by record spending and sustained operational tempo. While industry bodies raise concerns about potential policy impacts on future investment, the current reality for companies like Topdrill is one of unprecedented demand and robust activity, highlighting a dynamic and evolving landscape within Australia’s vital resources industry.