Junior Mineral Exploration Incentive (JMEI)

AMEC is a strong supporter of the JMEI. The Australian Government allocated $190 million for this incentive over the past eight years (2017 – 2024) and the final round has now been allocated on 4 June 2024. The benefits of the JMEI to the economy have not previously been well understood and this led AMEC to engage BDO to undertake a comprehensive Economic Impact Assessment (EIA) report to demonstrate the impacts.

BDO has delivered the final report to AMEC and the results show an overwhelming positive impact on capital raising, mineral exploration activity and the broader Australian economy and this supports AMEC’s request to extend the program. The BDO report and survey also provided industry insights that have informed several recommendations to improve the JMEI.

With this strong evidence base to back the incentive, AMEC has commenced advocacy with the Australian Government to fund the JMEI in the FY2026 Budget or provide ongoing funding. The BDO EIA Report is set for release in 2025 and AMEC will notify members when this occurs.

Critical Minerals Production Tax Incentive to Senate Committee

On 25 November, the Federal Government introduced the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024. In the final hours of parliament, it was moved to the Senate Committee for Economics for response.

AMEC will supply a submission highlighting possible improvements, such as greater clarity around how “Community benefit principles will be applied”, reducing the ramifications of Pillar II tax amendments (that push for tax equalisation), and drawing the start date earlier. The intention is that it will begin on 1 July 2027.

The Bill does three main things:

• Establish a critical minerals tax incentive worth 10% of the value of relevant mineral processing and refining costs for the production of any of Australia’s 31 critical minerals
• Establish a hydrogen tax incentive worth $2 for every kilogram of renewable hydrogen produced by eligible projects that have reached a final investment decision before July 2030
• Expand the role and remit of Indigenous Business Australia to help support more investment into Indigenous communities.

Nature Positive

AMEC, along with multiple industry associations, worked together to hold off the passage of the Nature Positive legislation in the final sitting week of the year. As over 35 pieces of legislation passed the Australian Parliament in the final handful of days, there was concern as to what deal was being struck to get the necessary numbers to pass the legislation.

In particular, it was believed that the currently exempt Regional Forest Agreements (RFA) and logging could be included in the Nature Positive Bill, as part of the agreement between the parties. This would have a significant impact on the operations of a number of members as well as the exploration and mining sector.

Unless the Commonwealth parliament reconvenes in the new year, it is likely these were the final sittings of the Government. AMEC will stay across any developments on Nature Positive and respond accordingly.

ALRC: Future Acts Review

The Australian Law Reform Commission is consulting on the native title future act inquiry as announced by the Hon Mark Dreyfus, the Commonwealth Attorney General. This consultation will delve into the Future Acts process and possible improvements. AMEC has reached out to the ALRC and have provided feedback already. 

The Expedited Procedure is crucial for the mineral exploration sector, and AMEC will be directly advocating for this important process to continue.

To learn more please contact Neil van Drunen on 0407 057 443.