WA's mining sector has welcomed the federal government's decision to reinvest in a national exploration scheme over the next four years.
Western Australia's mining sector has welcomed the federal government's decision to reinvest in a national exploration scheme over the next four years.
Resources Minister Keith Pitt announced the $100 million investment on Wednesday, ahead of next week's federal budget.
Set up in 2018, the Junior Minerals Exploration Incentive (JMEI) scheme is aimed at encouraging more greenfields exploration and private investment in the Australian mining sector.
The program provides tax incentives for more than 85 explorers, with more than half of these headquartered in WA.
Chamber of Minerals and Energy of Western Australia chief executive Paul Everingham said greenfields exploration was vital to the industry.
“The wider public is probably quite familiar with the WA’s big and established mining projects, and these deserve to be celebrated for the economic, employment and community benefits they deliver for the state and, indeed, the country,” Mr Everingham said.
“But people likely aren’t as aware of the vital and wide-ranging exploration activities around WA that help pave the way for many of these projects.”
The JMEI extension follows the latest round of grants under a co-funded drilling program, as part of the state government's Exploration Incentive Scheme.
In April, $6.3 million in grants were allocated to projects in WA.
Association of Mining & Exploration Companies chief Warren Pearce said the JMEI extension would attract more private investment in exploration and help unlock new mining jurisdictions.
“Ultimately, this contribution relies on continuing mineral exploration to restock the pipeline of new projects for future development,” he said.
Mr Pearce said the resources sector made a considerable contribution to the Australian economy, employing more than 260,000 people.
Meanwhile, Mr Pitt said the federal government would continue to support junior miners.
“Our successful, stable and secure resources sector is underpinned by our world-class junior explorers,” he said.
“These companies ensure the ongoing exploration and the discovery of new mineral resources, including critical minerals that positions Australia to drive the global economy of the future.
“Australia can provide the world with secure supply chains and manufacturing opportunities for rare earths and critical minerals that are vital in the production process of our smartphones, batteries, new tech medical appliances and our defence componentry.”
Local companies to have received JMEI support include Nedlands-based Stavely Minerals, which received $1.35 million in the previous financial year to explore a copper-gold project in Victoria.
The JMEI extension is in addition to the federal government’s $225 million Exploring for the Future Program, run by Geoscience Australia.
