Queensland Government must invest in new mineral exploration
26 March 2019
The Association of Mining and Exploration Companies (AMEC) today released a pre-budget submission to the Queensland Government highlighting the critical need to invest in and increase mineral exploration in the state.
“Queensland needs a strong and prosperous mining and mineral exploration sector to support the continued growth and development of the State's economy,” says AMEC Chief Executive Officer Warren Pearce.
Greenfield mineral exploration expenditure in Queensland has decreased every year for the past seven years and is less than 18% of what it was in 2011-12. Overall expenditure on exploration for the state has fallen over 80% in the past 8 years. Revenue from coal, base and precious metals and other minerals is forecast to grow 29.0% and exceed $4 billion in 2018-19.
“Queensland needs to be internationally competitive to continue to attract mining and mineral exploration investment and create jobs. New mine developments are needed to deliver increased employment and an economic dividend for the state.”
The submission also outlines the need to cut costs, by removing, streamlining and lowering unnecessary barriers to investment. The 2018 Fraser Institute’s Survey’s ‘Investment Attractiveness Index’, Queensland fell for the third year in a row dropping from 10th in 2016, to 12th in 2017, to 13th out of 83 jurisdictions (13/83) in 2018.
“Companies and investors are increasingly likely to head to international jurisdictions that have low cost operating environments, and where the potential returns can be considerably greater than in Queensland.”
“There are obvious signs that the industry and investor confidence are starting to recover from record low performance indicators over the last few years, but to ensure the recovery is maintained it is critically important that the industry has long term stability and predictability for business decision making,” says Mr Pearce.