Investment is critical to exploration. The methods are costly and the prospects uncertain - approximately one in every 1,000 may result in a mine. In 2003-04 the minerals industry spent around $50.5 million on exploration in NSW, however investment levels have been falling. A recent publication Australian Mineral Exploration: A review of exploration for the year 2004 found that spending on exploration increased in all states in Australia except NSW, where spending fell by 14.1 per cent. Decline in exploration expenditure has flow-on effects to the economy in terms of jobs and NSW Government mining royalties.
Government has an important role in assisting the exploration industry. Exploration NSW is the NSW Government's seven year $30 million initiative to promote a sustainable mineral and petroleum exploration industry in the state. The program aims to enhance the state's framework of geological, geophysical and mineral resources mapping and information. Exploration NSW is scheduled to terminate in 2007. Decisions regarding continuance of these work programs and of new initiatives are being considered by the NSW Government during calendar year 2005.