The JMEI encourages investment in small minerals exploration companies that carry out greenfields mineral exploration in Australia. 

Eligible exploration companies can generate tax credits by choosing to give up a portion of their losses from greenfields mineral exploration expenditure. 

These tax credits can then be distributed to investors who purchase newly issued shares in that eligible entity during a certain period. 

Australian resident shareholders issued with an exploration credit are entitled to either: 

• a refundable tax offset 

• additional franking credits if they are a corporate tax entity

The exploration company’s carry forward losses will be reduced proportionately to reflect the amount of exploration credits issued to its shareholders.

The JMEI helps to attract investment in junior mineral exploration companies searching for new mineral resources in Australia.  

The mining industry has underpinned Australia’s economic growth, wealth creation and employment opportunities over several decades.  

Australia continue to increase our overall mineral production volumes. However, we are not replenishing the mines that are coming to their natural end, with new discoveries.  

There is a critical need for investment in Greenfields mineral exploration in Australia to discover the significant volumes of new mineral resources to meet growing needs of the clean energy, defence, medical applications, development, construction and other industries. 

Mineral exploration is a long-term, high-risk activity which needs to attract equity capital in a globally competitive marketplace. The JMEI helps explorers raise capital quickly for mineral exploration.

The JMEI was developed following the $100 million Exploration Development Incentive (EDI) 2014-15 to 2016-17.

The JMEI was initially allocated $100 million capped over 4 years from 2017–18.  

The 2021-22 Budget provided an additional $100 million to extend it for a further 4 years until June 2025.  

The final round of JMEI funding was allocated for 2024-25 and has now been allocated to successful applicants. 

AMEC is advocating for the Australian Government to continue the program for at least another four years. AMEC is also advocating for the program to be funded ongoing.

The JMEI program was launched in 2018 by the Australian Government as an initiative to encourage and incentivise investment into Greenfields exploration. 

The Australian Taxation Office is responsible for allocating JMEI funding for tax credits.

The Department for Industry, Science and Resources (DISR) is responsible for the JMEI policy framework and undertaking annual impact assessments.

To be eligible to participate in the JMEI, you: 

• must be a greenfields minerals explorer – a greenfields mineral explorer must be a constitutional company that is a disclosing entity under section 111AC of the Corporations Act 2001 

• must have incurred greenfields minerals expenditure for the income year 

• or an entity that is affiliated or connected to you, must not have carried on any mining operations for the extraction of minerals for the purposes of generating assessable income during the current income year and during the immediately preceding income year in which greenfields minerals expenditure is incurred

Being eligible does not guarantee you will secure a JMEI funding allocation.

The JMEI is currently allocated by the Australian Taxation Office on a first come first served basis with annual allocations exhausted within minutes of the fund opening.

AMEC is recommending that a merit-based selection process for allocating funding is implemented. This can ensure that funding is directed to explorers working in areas or commodities identified to be of strategic importance.

AMEC is making the following recommendations to the Australian Government to extend the program and increase the benefits to the economy and a wider range of companies: 

• Extend the JMEI for a further four years to the 2028-29 financial year at a minimum

• Increase funding pool to $200 million over four-year period 

• Make the JMEI a permanent initiative in the Australian Government Budget 

• Develop a merit-based allocation process rather than the first in first served allocation process currently in place 

• Consider extending the timeframe that companies have to use the JMEI credits and linking credits to a capital raising 

• Require successful companies to report impacts annually to Government to better measure the benefits 

• Increase awareness of the JMEI and encourage more companies to apply

AMEC commissioned BDO to undertake an Economic Impact Assessment of the JMEI to demonstrate the value to the Australian economy. 

The results showed that for the period 2017-18 to 2023-24 the $200 million in JMEI created: 

• $1.2 billion in junior mineral exploration company capital raising to fund company exploration activities 

• $404 million exploration expenditure which is spent on suppliers providing services including, employing drilling contractors, site surveys, laboratory assays, camp supplies 

• $5.9 billion in mineral production from mining operations  

• $391 million government revenue for spending on the needs of the Australian community 

• $769 million Gross Domestic Product (GDP), an overall indicator of the value the JMEI has added to the economy including exploration spending and commodities produced and sold to the market

There is overwhelming demand from industry for the JMEI and it is always oversubscribed with allocations awarded to successful applicants in just minutes.  

Mineral exploration is a long-term, high-risk activity which needs to attract equity capital in a globally competitive marketplace. 

The BDO report shows that for every $1 spent on JMEI this results in $6.38 in capital raising and $2.41 exploration activity.

These results indicate that the JMEI is doing exactly what it set out to do and supports AMEC and Industry requests to extend the incentive for junior mineral explorers.