The Association of Mining and Exploration Companies (AMEC) says there is a need for increased funding within the mining and resources sectors, following the release of the South Australian State Budget 2025.
AMEC says with no investment attraction incentives in this year’s state budget, the industry is holding out for the government to change the Mining Act in the current round of reviews.
Association CEO Warren Pearce says the priority amendment for AMEC members is the option for additional exploration licence terms beyond the “drop dead 18-year licence expiry”.
“The terms of the amendment are crucial and will have the potential to make or break the future of exploration in South Australia.”
As such, AMEC is calling for numerous initiatives to be adopted. These initiatives include releasing the Critical Minerals Strategy and funding to support its delivery, increased funding, speeding up tenement administration, and co-funded drilling initiatives.
In South Australia, there has been a $28 million decrease in total exploration spend, as reported by the Australian Bureau of Statistics (ABS) March 2025 quarter results.
During the December 2023 quarter, South Australia’s exploration spend totalled $79.5 million.
AMEC says the budget “fails to deliver any meaningful allocation of funding that will make a difference to the confidence of the mineral exploration and mining industry”.
The budget offers a $650 million package to save Whyalla Steelworks to stabilise steelworks during administration, modernise the steelworks and ensure future sustainability, as well as an emergency response package.
Pearce says although the Whyalla Steelworks package is a step to secure key infrastructure and industrial capability, the industry is seeking support to discover and deliver new mines.
“Of significant note, is the inability for this government to release their highly anticipated Critical Minerals Strategy, something that has been in the pipeline for over three years now,” Pearce says.
“With a federal government committed to an energy transition that runs through critical minerals, South Australia strangely remains the only jurisdiction in the country not to release their own strategy.”
The Association of Mining and Exploration Companies is a national association representing more than 575 member companies from around Australia.
Mining.com.au is an associate member of AMEC.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
