Mineral exploration investment has slumped to its lowest level in eight years, according to the Australian Bureau of Statistics.

The data on the search for new digs has highlighted the extent of the sector's troubles in Western Australia, with exploration expenditure dropping to $183.5 million in the March quarter, its lowest level since early 2007.

The figure is over three times lower than its level during the mining investment boom in 2012, and represents a decline of more than 10 per cent in just over a year.

Independent resources analyst Peter Strachan has told the ABC that the decline came as no great surprise.

“Since the global financial crisis people are not investing, they have not found the risk-reward ratio to be rewarding enough to be investing in pure exploration companies,” he said.

“Investors are just not stumping up for exploration spending... and I cannot say that we have seen it bottom out.”

But Mr Strachan said the lack of exploration would actually lead to a recovery in the value of many commodities.

“With the lack of money being spent on developing new projects it's almost certain that by late 2016 or early 2017 there will be a shortage of supply of these commodities,” he said.

A spokesperson for the Chamber of Minerals and Energy, Bruce Campbell-Fraser, says the industry must back exploration.

“Some major construction projects, Chevron's Gorgon and Wheatstone projects along with Roy Hill iron ore, will soon finish construction,” he said.

“So our next priority must be attracting the next wave of investment and that starts with exploration programs.

“There's been a good effort put in place to try and attract the right sort of environment through incentives to get people to spend money.”