Western Australia was the largest contributor to an increase in exploration spending in the three months to June according to new data which was released just days after the federal government announced a $100 million exploration incentive.
Western Australia was the largest contributor to an increase in exploration spending in the three months to June, according to new data released just days after the federal government announced a $100 million exploration incentive.
Total mineral exploration increased by $26.4 million, or 6.6 per cent, to $428.5 million across Australia in the June quarter, according to new figures by the Australian Bureau of Statistics, with WA being the largest contributor to the increase in the trend estimate, up $17.4 million, or 6.5 per cent.
According to the data, the majority of the increased spending was on existing deposits as opposed to new areas, while selected base metals attracted the largest amount of expenditure.
“Today’s ABS figures show that greenfields mineral exploration is beginning to recover,” Association of Mining & Exploration Companies acting chief executive Graham Short said.
“Despite the positive growth, the percentage of greenfields mineral exploration of metres drilled remained fixed at 30 per cent.
“Nearly 70 per cent of mineral exploration activity in Australia is extending existing deposits or drilling nearby an existing deposit.
“Australia needs greater greenfields mineral exploration to find the mines of tomorrow.”
The data came just days after Prime Minister Malcolm Turnbull announced a $100 million Junior Mineral Exploration Tax Credit program, which will provide tax incentives for junior explorers over four years.
The program will allow the tax losses in greenfield exploration companies to be distributed as a credit to Australian-based shareholders.
“These tax incentives will encourage junior explorers to take risks and to have a go at discovering the next large-scale mineral deposit,” Mr Turnbull said.
“We want to turnaround the greenfields mineral exploration expenditure that has declined by almost 70 per cent over the past five years.
“Under the new scheme, Australian resident investors of junior explorer companies will receive a tax credit where the exploration company chooses to give up a portion of their losses relating to their greenfields exploration spending in an income year.”
Deputy Prime Minister Barnaby Joyce said the credit would make it more financially attractive for the nation’s mineral explorers to fine resources in untapped regions.
“Specifically, only newly issued shares relating to capital raising for investment in new greenfields exploration activity will be eligible for these tax credits,” he said.
“This will help maximise the incentive for additional investment in minerals exploration.”
Mr Short said the JMETC scheme would help drive increased greenfields mineral exploration by attracting much needed equity capital.
“The ABS statistics today reinforce the need for JMETC and greater greenfields mineral exploration,” he said.
