The Junior Minerals Exploration Incentive (JMEI) has been extended for four years thanks to a $100 million boost from the Coalition Government that will fuel industry growth and ensure jobs for future generations of miners.
The JMEI has supported 85 junior exploration companies to date, with over half of these companies headquartered in Western Australia. Australia’s gold exploration activities are critical to the future growth of the industry, with expenditure increasing by nearly 16% in 2020 to nearly $1.3 billion, accounting for 47% of Australia’s total minerals exploration expenditure during the year.
Minister for Resources, Water and Northern Australia Keith Pitt said the JMEI allows eligible companies access to tax incentives to attract new investors, and has encouraged companies to explore for resources in untapped areas of Australia.
“The Coalition Government will continue to support our junior mining companies and encourage exploration and development of new resource deposits,” Minister Pitt said.
“We need to ensure that we have a continuous investment pipeline for development across regional Australia.
“The resources sector directly employs more than 260,000 people, with most of these jobs in regional Australia.
“We want to make sure the industry continues to grow and maximises the benefits for all Australians.
“Our successful, stable and secure resources sector is underpinned by our world class junior explorers,” said Minister Pitt.
Greenfields exploration is what identifies the new high-quality mineral deposits across the 80 per cent of Australia that is underexplored. Junior explorers find up to 70 per cent of deposits that form the pipeline for new projects.
“Extension of the JMEI complements the existing suite of Australian Government support for greenfields exploration, including the $225 million Exploring for the Future Program run by Geoscience Australia,” Minister Pitt added.
Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce said the continued increase in greenfield mineral exploration expenditure from September quarter comes off the back of significant capital raisings in the June quarter with $1.34B raised across the exploration sector, supporting new exploration programs.
“The ability of Australian mineral exploration and mining companies to continue operating where possible, in adherence with COVID-19 restrictions, has driven interest in mineral exploration following a number of recent promising discoveries in multiple jurisdictions,” said Mr Pearce.
“Total expenditure rose in Western Australia by 17.2%, Northern Territory by 15.6%, Queensland by 9.3%, and Tasmania by 65%. However, those jurisdictions more affected by COVID-19 fell; New South Wales fell by 21.38%, Victoria by 12.85%, and South Australia by 10.71%.
“The discovery and development of new mines will continue to provide jobs and ongoing economic and social benefits for Australians,” said Mr Pearce.