The state government has committed $3.5 million to clearing a mining tenement applications backlog, which it believes will encourage further exploration in the state, but industry is looking for more support.
The state government has committed $3.5 million to clearing a mining tenement applications backlog, which it believes will encourage further exploration in the state, but industry is looking for more support.
In an announcement, resources minister Francis Logan said the money, to be allocated over the next three years, will allow the department of Industry and Resources to employ more contract workers to help reduce the backlog.
This, he said, would encourage more exploration activity in Western Australia.
"As a result of previous supplementary funding, a record amount of tenement applications were granted last financial year," he said.
The decision was welcomed by the Association of Mining and Exploration Companies, but the body said further changes were needed to meet the sector's needs.
AMEC policy and public affairs manager Ian Loftus told WA Business News the increase in funding would do little to reduce the backlog or incite increased exploration by the state's mining companies.
Issues of sovereign risk still played on the minds of resources companies, he said.
"Look at the way Cazaly (Resources Ltd) was dealt with," he said.
"Mineral explorers want to be able to explore on tenements, and to know that they have a claim to them."
"This is a good start, but more effort is needed."
The full text of a Ministerial announcement is pasted below
The State Government has committed $3.5 million to reduce the backlog of mining tenement applications in Western Australia.
Resources Minister Francis Logan said the backlog, which peaked at 18,700 in February, was a direct result of enormous resources boom underway in WA.
"The resources boom is underpinning our economic growth and bringing huge benefits to the State and to Australia," Mr Logan said.
"But it is also creating many challenges and the backlog of mining tenement applications is something that needs to be rectified.
"The $3 million over the next three years, plus $500,000 in ongoing funding, will allow the Department of Industry and Resources to employ people on a contract basis to process these applications and reduce the backlog.
"I want to see the backlog reduced to an operational level of 5,000 applications within three years."
The Minister said reducing the backlog would encourage more exploration activity in the Western Australia.
"Last year's amendments to the Mining Act have delivered significant short and long term benefits to the mining industry," he said.
"It has included mechanisms to revert from unwanted mining lease applications to new exploration titles and prevent the backlog in mining leases applications from recurring.
"With the 2006 reversion period closing in February this year, the backlog has now started to decline."
Mr Logan said the use of Regional Standard Heritage Agreements had also helped reduce the backlog.
He said these agreements were developed between industry and native title groups to address Aboriginal heritage and exploration activities to reduce objections by native title parties and speed up the processing of exploratory applications.
"As a result of previous supplementary funding, a record amount of tenement applications were granted last financial year," the Minister said.
"A total of 2,780 grants were achieved compared to the previous five-yearly average of 1,570 grants.
"The department is again on target to process a similar record amount of applications again this financial year."
