The Association of Mining and Exploration Companies has called on the state government to provide more support for the mineral exploration sector to reverse a slide in exploration spending.
The Association of Mining and Exploration Companies has called on the state government to provide more support for the mineral exploration sector to reverse a slide in exploration spending.
AMEC chief executive Justin Walawski said "when all other states/territories are reporting double digit and triple digit percentage increases, Western Australia is the only state where mineral exploration has declined".
The fall in exploration spending comes at a time when resources companies are spending record amounts on the development of known mineral deposits.
An announcement by AMEC is pasted below:
WA's SHARE OF MINERAL EXPLORATION WORST ON RECORD
Figures just released by the Australian Bureau of Statistics (ABS) confirm Western Australia recording its worst ever share of mineral exploration and the only state going backwards in mineral exploration investment.
Once seen as the prime destination for mineral exploration, Western Australia's share of mineral exploration has fallen from 65.3% (June quarter 1998) to 43.7% (June quarter 2006) - an almost 22% decline. Australia's peak industry body on mineral exploration, the Association of Mining and Exploration Companies (AMEC) raised concerns about the slump in Western Australia relative to the performance of other states and territories.
AMEC's Chief Executive, Dr Justin Walawski said that the "figures confirm that Western Australia is the worst performing state in Australia. Opportunities lost in direct investment measure in the hundreds of millions and, once the multiplier effect is taken into account, opportunities lost to the state exceed $4.8 billion".
Taken on an annualised basis, ABS figures show Western Australia failing to encourage investment in mineral exploration at a time when the resources sector should be leading to record investment. The ABS statistics show South Australia recorded an increase in mineral exploration expenditure of 118.9% over the 2005/2006 period with all other states, except WA, recording 30 - 55% increases. Over the same time period, mineral exploration investment in Western Australia fell by $16 million or 2.6% and continues an alarming trend which appears to have begun in late 1998.
Mr Walawski said "The latest ABS June quarter figures are a wake up call. When all other states/territories are reporting double digit and triple digit percentage increases, Western Australia is the only state where mineral exploration has declined".
AMEC's Chief Executive said other states had introduced policies to encourage mineral exploration and were ensuring government approval processes reflected a desire to attract mineral exploration rather than hinder or prevent it.
Dr Walawski stated that "the industry's entire footprint makes up a miniscule .03% of the state's land mass, contributes more to the state's economy than any other single industry, but increasingly feels it is taken for granted and treated as both a cash cow and whipping boy. WA's policy and regulatory framework is seen as unattractive, relative to other parts of Australia and mineral exploration companies are voting with both their feet and shareholder funds by moving to other States and territories".
Dr Walawski said, "Exploration companies make the discoveries which form the foundation of the state's economy - Western Australia must compete with other states and regions and address the negative reputation it is unfortunately acquiring if it hopes to reverse an entrenched pattern of decline."
