Restore industry confidence and increase exploration investment
IN THE LOBBY: The Association of Mining and Exploration Companies (AMEC) has given the Minister for Industry Hon Ian Macfarlane a big slap on the back after he announced the Federal Government’s commitment to working with the States and Territories to implement the recommendations from the Productivity Commission Inquiry Report into Mineral and Energy Resource Exploration.
AMEC was happy because the report had recognised many of the concerns the association identified in its various submissions and presentations to the Commission over the past 18 months.
AMEC’s recommendations included implementing a tax credit for mineral exploration, increasing efficiency and reducing duplications, increasing transparency and accountability, reducing the regulatory approval timelines and dismissing cash bidding for resources.
“The Government’s commitment to implementing an Exploration Development Incentive (EDI) will go a long way towards addressing low discovery rates of new mines,” AMEC chief executive officer Simon Bennison said.
“It will help to reverse the ongoing reduction in Australian greenfield exploration activities and the low number of Initial Public Offerings for mineral projects in Australia.”
AMEC proclaimed the EDI will be formally announced by Hon Ian Macfarlane at the upcoming AMEC Convention to be held in Perth staring on 2 July 2014.
More information and details on the implementation of the EDI will also be provided by industry leaders at the event.
“Along with the repeal of the carbon tax and the MRRT, the EDI will help Australia to regain some of its international competitiveness and increase its share of global exploration expenditure,” Bennison said.
“This is essential to discover the mines of tomorrow, develop new projects, create jobs and Government revenue streams, for the benefit of all Australians.”
AMEC said it considered it to be a step in the right direction by the Government to continue to work with the States and Territories to implement a ‘one-stop shop’ for environmental assessments and approvals by the end of 2014 to reduce red tape and streamline the approvals process.
A recent report from the Bureau of Resources and Energy Economics highlighted a shift into the production phase across the industry.
AMEC said it is important that essential that investment in mineral exploration is encourage to ensure discovery of the mines that will sustain the industry and Government revenue streams for the future.
“AMEC will continue to work with all Governments on the implementation of initiatives highlighted in the Productivity Commission Report including rescinding the ‘water trigger’ amendments to the Environmental Protection and Biodiversity Conservation Act, and recommendations surrounding cultural heritage protection which are fundamental to improving clarity and certainty for mining and exploration,” Bennison said.