Miners invested A$973 million in the three months ended Dec. 31, according to a report by consultancy BDO, up 11% on the prior quarter. The spending lift was supported by a record A$3.75 billion worth of financing flowing into the sector through equity and debt raisings.
Prices for a wide range of raw materials, from copper and nickel to iron ore, have surged on the back of government stimulus spending to boost the economic recovery from the pandemic. The mining industry is stepping up its efforts to find new resources to meet strong demand and cash in on the strong price environment, but is playing catch up after years of under-investment.
The key battery mineral overtook gold in attracting the most capital, receiving over A$2 billion in financing in 2021. Liontown Resources Ltd., which is developing a lithium project in Western Australia, had the single biggest fund raising in the December quarter, earning A$450 million via an equity issue.