Budget a let down on exploration incentives

AMEC and the Minerals Council of Australia are describing the Federal Budget as a missed opportunity to safeguard the economy through support for junior miners. By quietly abandoning the Junior Minerals Exploration Incentive (JMEI), the government was ignoring the mining industry at precisely the moment Australia should be securing its resource future, MCA chief executive officer Tania Constable said. "The decision is a severe setback for exploration investment, undermining investor confidence and weakening Australia's long-term mineral resource pipeline," she said. "Without this pipeline, there is no downstream processing and manufacturing. "A renewed focus on ‘buy local’ to support industry comes too late for many businesses already weakened by uncompetitive industrial relations policies, soaring energy prices, and restrictive regulations. You can’t champion Team Australia while sabotaging Australian industry. "Australia's ability to respond effectively to global trade pressures and tariffs has been severely compromised by domestic policies that have eroded our industrial base and competitiveness. "Rather than implementing urgently needed reforms to strengthen productivity, attract business investment, and control spending, the government has missed yet another opportunity, continuing to rely on mining revenues to cover uncontrolled expenditure." AMEC has been calling on the Australian Government to extend the JMEI after the final year of allocations was awarded to companies in June 2024 for the 2024-25 financial year. For the program to continue, a new funding commitment would need to be made during the imminent election campaign, the peak body said. “After eight years of a successful program, we’ve been working with the government to evolve the incentive to be even more impactful," chief executive officer Warren Pearce said. “We are expecting that both major parties will address measures in the upcoming election to support the exploration sector in Australia, because without exploration you can’t find the mines of the future. “The JMEI is a proven program that supports junior exploration companies and is a substantial contributor to Australia’s economy and government revenue. “Exploration needs support, and we need to see strong commitments from the major parties during this election campaign. “You can’t have a mining boom or downstream processing, if you don’t make the discoveries in the first place.” The BDO Economic Impact Assessment Report on the JMEI, commissioned by AMEC and released earlier this year, found the JMEI has stimulated $404 million in greenfield exploration activity since 2017, at a cost to taxpayers of $182.2 million in credits.

Budget a let down on exploration incentives

Industry Queensland

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