Exploration Incentive Scheme good news for industry
24 August 2-17
“The Western Australian Government’s commitment to continue the exploration incentive scheme is good news for mineral exploration,” said Simon Bennison, Chief Executive Officer, Association of Mining and Exploration Companies (AMEC).
“The EIS is needed to help mineral exploration companies undertake greenfields mineral exploration, which often takes place in remote parts of WA.”
“Independent research into the Western Australian scheme has demonstrated the value of the programme. Each $1 million invested led to an estimated long run cumulative increase of exploration expenditure of $19.8million.”
“A separate evaluation of the similar South Australian PACE initiative (Plan for Accelerating Exploration) between 2004 and 2013 showed that an investment in precompetitive geoscientific data and collaborative drilling programmes provided returns on investment of over 20:1.”
“Roughly 80% of Australia’s current mineral production is from mines discovered before 1980.”
“Eventually these mines will have to be replaced, and given that it can take over ten years to develop a deposit into a working mine, the mines of tomorrow need to be discovered now.”
“The vast majority of Australian greenfields mineral exploration is done by small, ASX listed mineral exploration companies reliant on retail investors. Increasing the attractiveness of mineral exploration companies to these investors will lead to an increase in Australian greenfields mineral exploration.
“While the co-funded drilling component of the EIS will help companies with their innovative drilling programmes there remains an urgent need to rollover the Federal Government’s Exploration Development Incentive programme and an extension to a more flexible tax incentive programme.”
“To discover the mines of tomorrow, the industry needs greater investment. Each new mine creates jobs, revenues and royalties,” said Mr Bennison.