The state government has committed an extra $2.5 million a year to a scheme aimed at encouraging further investment in WA's mining sector.
The state government has committed an extra $2.5 million a year to a scheme aimed at encouraging further investment in Western Australia's mining sector.
It brings the total annual contribution to the Exploration Incentive Scheme (EIS) to $12.5 million, starting this financial year.
The state government has invested $10 million into the EIS each year since its establishment in 2009, except for a one-off extra funding of $5 million in 2020-21, as part of WA’s COVID-19 recovery plan.
The EIS supports five programs including the co-funded drilling program, which offers up to a 50 per cent refund on exploration drilling and is open to applicants twice a year.
Applications for round 24 of the program are scheduled to close on August 27.
Mines minister Bill Johnston said the extra EIS support could help find the next big discovery in WA.
IGO’s Nova nickel mine and the Gruyere operation – a joint venture between Gold Road Resources and South Africa’s Gold Fields – originated from the scheme, as did Bellevue Gold’s namesake project, according to the mines department.
“Western Australia’s mining industry is thriving, so it’s important that we strike while the iron is hot,” Mr Johnston said at the annual Diggers & Dealers mining forum.
Association of Mining & Exploration Companies chief executive Warren Pearce said the EIS was a highly successful program that encouraged greenfields exploration.
“The co-funded drilling program helps exploration companies leverage matching private funding to undertake greenfield exploration, helping to bringing much needed additional investment into WA," he said.
Chamber of Minerals and Energy of Western Australia chief executive Paul Everingham said exploration was critical to the long-term success of the state's mining and resources sector.
“We look forward to this funding increase helping pave the way for future operations that will add to the $140 billion of projects currently in the WA mining and resources pipeline," he said.
