The Association of Mining and Exploration Companies (AMEC) supports the Opposition’s decision to continue the Junior Minerals Exploration Incentive (JMEI).
Opposition leader Peter Dutton is committing $100 million to the JMEI over a four-year period.
AMEC has been calling on both of the major federal government parties to support the continuation of this incentive.
In March, mining sector advocates labelled Treasurer Jim Chalmers’ Federal Budget as a missed opportunity, with key recommendations and certain issues raised overlooked by the Australian Government.
A major issue for the sector is the government’s decision in the Budget to not extend the JMEI.
AMEC has been calling on the federal government to extend the incentive program — which encourages investment in greenfields mineral explorers — after it reached its conclusion.
Established in 2017, the JMEI has driven $404 million in greenfield mineral exploration activity and has cost taxpayers $182.2 million in credits.
For the program to continue, a new funding commitment will need to be made during the imminent election campaign, industry advocates say. For every dollar allocated to the JMEI, more than $2 was spent on exploration, and more than $6 was raised in capital markets.
“That money was used for more rigs, for more drillholes and more exploration,” AMEC Chief Executive Warren Pearce says.
“This is an investment in Australia’s future and is needed to support the discovery of minerals and the future development of mines.”
The JMEI was initially developed in consultation with AMEC and legislated by the Turnbull Coalition Government. After four years, it was re-funded by the Morrison government.
Pearce says the opposition’s commitment to build on the previous eight years provides opportunities for explorers that may not have been possible otherwise.
“Attracting investment in mineral exploration is always challenging, but it is essential for Australia to keep exploring and making the discoveries that turn into new mines, and to keep our country prosperous,” the CEO says.
“The JMEI drives exploration and it makes great economic sense for both the opposition and federal government to back it in.”
The Association of Mining and Exploration Companies is a national association representing more than 500 member companies from all around the country. Its members are explorers, emerging miners, producers and a wide range of businesses and service providers working for the industry.
Mining.com.au is an associate member of AMEC.
Write toAaliyah Rogan at Mining.com.au
Images: AHN
