The Western Australian Government has decided that companies affected by the current fuel supply issues can apply for exemptions to the minimum exploration expenditure requirements.
If granted, exemptions will apply to the company’s minimum expenditure requirements on its mining and exploration tenure. Exemptions will be granted at the discretion of the Minister for Mines and Petroleum David Michael, with exemptions granted on a case-by-case basis.
The Association of Exploration and Companies (AMEC) Chief Executive Warren Pearce says minimum expenditure requirements are fundamental to the good working of the mineral tenure system and ensures that companies that hold tenure are actively exploring the ground.
“Sometimes for reasons beyond their control, companies are not able to do so, and that’s when such discretion can appropriately be used,” Pearce says.
“Hopefully, these measures will not be required, however, the recognition of government to the challenges being faced by mining and exploration companies is reassuring and offer a practical way to take some pressure of the sector.”
Similar measures were used during COVID-19, when large portions of the state were unable to be accessed for significant periods of time, preventing explorers to access their tenements.
AMEC says these steps from the Western Australian Government recognise the current fuel security situation and provide a proactive approach to assist the most vulnerable companies in the exploration and mining space.
“These measures are only used when companies can demonstrate genuine reasons why they could not meet minimum expenditure conditions, and are the exception and not the rule,’ Pearce adds.
Mining.com.au is an official member of AMEC.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
