Junior Minerals Exploration Incentive Credit snapped up
26 June 2018
The Junior Minerals Exploration Incentive (JMEI) second round has been over-subscribed, with 46 companies successful in applying for the available credits for the 2018/19 income year.
This justifies the Federal Government decision to redesign the Exploration Development Incentive (EDI) that was announced by the Prime Minister in August 2017 and had bi-partisan support through the Parliament.
The JMEI allows mineral exploration companies (with no mining income) to raise capital, and renounce and pass future tax deductions to their Australian resident investors. The money raised must be spent on greenfields mineral exploration in Australia.
The first round of applications for the 2017/18 income year saw 23 applicants being successful in accessing $8.467m of exploration credits. The balance remaining from the initial $15m allocation for 2017/18 was added to the $25m exploration credits available for the 2018/19 round. Applicants were able to access in excess of $31.5m. Each applicant was limited to 5% of the available credits on a first come first served basis.
“Hitting the JMEI cap vindicates the Government’s decision to rework the EDI and shows the returning strength of the mineral exploration sector,” said Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies (AMEC).
“AMEC had called for key improvements to the EDI over a number of years, and last year the Government decided to relaunch it as the JMEI including the improvements we had campaigned for.”
“Completely distributing the 2018/19 allocation of JMEI funding within two weeks reflects the substantial building confidence in the sector.”
“This means more greenfield exploration, which increases the chances of finding the next mine, and therefore more jobs and more revenues for local businesses.”
“The Australian Taxation Office must be congratulated on the fast turnaround of JMEI applications.”
“The next round of the JMEI opens next year on 1 June, and it will be filled on a first in, first served approach.”
“The JMEI is an excellent initiative that will create jobs, benefit regional Australia and Australian investors who back companies investing in finding future mines,” said Mr Pearce.
Link to list of successful companies