India may get new gold supplier:Australia spends ₹13,000 crore on exploration; sits on world’s largest gold reserves

Australia has spent a record ₹13,000 crore on gold exploration in a single year, as companies step up efforts to discover new deposits amid rising gold prices and global economic uncertainty. The country holds some of the world’s largest gold resources and could become a more significant gold supplier to India in the coming years. India relies heavily on imports to meet its gold demand, while Australia currently accounts for just 2.27% of India’s total gold imports. Increased production in Australia could provide Indian buyers with another source of supply. Gold rush in Australia as demand for drilling equipment rises Western Australia accounted for ₹10,625 crore of the spending on gold exploration. Demand for drilling equipment used to identify new gold deposits has also risen sharply, prompting observers to describe the surge in exploration as a ‘gold rush’. The region is estimated to contain around 13,000 tonnes of gold, accounting for approximately 20% of the world’s gold resources, according to the figures cited in the report. The developments are significant for India, which accounts for an estimated 30% of global demand for gold jewellery. Domestic production remains limited, forcing the country to depend on overseas suppliers. In the first quarter of 2026, India imported gold worth approximately ₹1.61 lakh crore. Bhaskar Analysis: Why are companies investing in gold exploration? 1. Rising gold demand amid wars and economic uncertainty Gold prices have climbed amid geopolitical conflicts and economic uncertainty, increasing interest in gold as an investment asset. Higher prices can also make the discovery and development of new deposits more attractive to mining companies. According to the figures cited in the report, spending on gold exploration in Australia increased by 23.6% in the June 2026 quarter. 2. Gold attracts the highest exploration spending Gold received the largest share of exploration spending among the metals and minerals covered in Australia’s June 2026 quarter figures. The reported spending was: Gold: ₹3,883 crore Iron ore: ₹1,606 crore Copper, nickel, zinc and lead: ₹1,217 crore Coal: ₹401 crore The figures indicate that companies are directing substantial resources towards finding new gold deposits. 3. Australia accounts for a significant share of global gold production Australia produced 314 tonnes of gold in 2025, compared with global mine production of approximately 3,300 tonnes. This accounted for around 9.5% of the world’s total production. The report also states that Australian gold production increased by more than 10% in a year, highlighting the country’s importance in the global gold market. How could India benefit from Australia’s gold exploration? India imports most of the gold it consumes. If exploration leads to new discoveries and higher production in Australia, Indian importers could have another source from which to purchase the metal. Australia’s mining and trade regulations, including requirements concerning the origin of gold and environmental compliance, could also help buyers assess the supply chain and verify the provenance of gold. However, increased exploration does not automatically translate into higher production. New deposits must be commercially viable, and mines can take years to develop. Will more gold from Australia make prices cheaper in India? An increase in Australian gold production could add to global supply and potentially ease price pressures. However, it would not necessarily lead to lower gold prices in India. Domestic prices are influenced by several factors, including international gold prices, the rupee-dollar exchange rate, import duties, taxes, global demand and production costs. The impact on Indian consumers would therefore depend on how much additional gold reaches the market and how other price-determining factors change. How do gold mines in India and Australia differ? Gold is generally extracted from gold-bearing ore, a mixture of rock and minerals containing the metal. The amount of gold recovered from each tonne of ore varies considerably between deposits. The figures cited in the report indicate that: India has approximately 50.18 crore tonnes of gold ore resources. Indian ore yields an average of around 1.17 grams of gold per tonne. Australian ore has reportedly yielded around 10 grams of gold per tonne in the comparison cited. Based on these figures, the Australian ore yield is approximately 8.5 times higher than the Indian average. However, ore grades vary from mine to mine and across different deposits. These figures should not be interpreted as a universal comparison of all Indian and Australian gold mines. Where does India’s gold supply come from? India meets its gold demand through imports, recycling and domestic mining. 82% — Imports: Gold purchased from other countries. 16% — Recycling: Gold recovered from old jewellery and other existing gold products. 2% — Domestic mining: Gold extracted from mines within India. These figures illustrate India’s dependence on imported gold. If Australia’s exploration boom results in commercially viable new mines and increased exports, the country could become a more important source for Indian buyers in the future.