The Association of Mining and Exploration Companies (AMEC) says the South Australian Government failed to deliver support to the resources sector despite releasing a surplus budget for 2024-25 on 6 June.
As a result of better-than-expected GST and state tax revenues – supported by the $420 million received in royalties from minerals and the petroleum industry – the budget focused on investing in health, housing and jobs, AMEC Chief Executive Warren Pearce says.
AMEC says the support to the resources sector includes a $3.6 million commitment over a two-year period to fund a green iron and steel initiative, as well as a $1.7 million investment for the Whyalla steelworks.
Besides this, there was little to no information in the budget regarding major resources industry requests, Pearce adds.
AMEC has long-requested additional funding to better resource the Department for Energy and Mining.
However, the council says the government has remained silent regarding funding the accelerated discovery initiative (ADI) and the critical minerals strategy, alongside an accompanying development fund, which no allocations have been made for.
AMEC’s Pearce says the delay in ADI funding comes at a time when South Australia has dropped global investment attraction ranking, as it fell to 19th position after maintaining a top 10 ranking for over a decade.
“This lack of government investment will have a knock-on effect for the junior explorers who are already doing more with less, as capital raising and inflationary pressures are also biting their businesses,” he says.
Pearce hopes to see policy and development approvals back in the spotlight, as critical government resources have been diverted from mining over recent years to deliver this legislation.
“South Australia has big plans for green iron and steel and a recent supply chain analysis demonstrates a 21% advantage to produce green iron in South Australia,” he says.
“This is underpinned by the states significant magnetite resources, and we welcome the commitment to support industry to grow value-adding opportunities.”
South Australia Treasurer Stephen Mullighan says it is the second consecutive surplus this year and there are forecast surpluses across the forward estimates in the budget.
“Not only are there now new taxes or tax increases, we remain the lowest taxing state on the mainland,” Mullighan says.
South Australian Premier Peter Malinauskas says the government is building the housing, skills, education, and health system needed to support a growing economy.
AMEC is continuing to seek funding to grow the economy with value-add opportunities for downstream critical minerals processing and to show the state’s critical minerals investment opportunities globally.
Write to Aaliyah Rogan at Mining.com.au
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