Queenslanders can expect a multiple times return from the projects that mature from the Collaborative Exploration Initiative (CEI).

The CEI grants are in their 14^th  year and focus on encouraging exploration, supporting innovative exploration techniques and promoting the discovery and development of ‘new economy’ minerals.

Accelerating returns

The grants are an accelerator in a high-risk, high-return business, says CEI Grants Manager for the Queensland Geological Survey, Rhys Davies.

“That’s the way I like to look at it, because one, exploration is hard, discovery often takes a lot of time, it’s an iterative process that results in discovery,” says Mr Davies.

“You’ve then got a long timeframe from discovery to development, and then on to production. 

“Some research shows it can take an average of 12 years for a discovery to be made. So if our projects are accelerated in any way, then they would come online sooner if they were ever to get to that production stage.”

Immediate return on investment

Mr Davies says there have been well over  100 projects funded under CEI all of which will show a return on investment in the form of jobs and demand for consumables and services.

Some will result in regional development and royalities and he says the flow down benefit to society as a whole is considerable. 

Mr Davies says a Western Australia study reports a 23 times return from similar grant schemes.

“I know that’s Western Australia, but as a proxy for our own grant scheme, it’s a pretty good guide,” he says. “So, it’s significant return on investment for the government.”

Projects to production

He cites the Lorena operation, east of Cloncurry as a good example of a project coming on line at the same time as a firming market, in this case gold.

“Lorena is a good example because that’s one where the grant-supported project resulted in discovery of further mineralization at depth, which also led the company to invest further, progress the project through resource development, and ultimately, production. 

“And interestingly the Lorena plant has recently been producing gold from concentrate that’s coming across from Agate Creek (another previous CEI recipient). So that’s a great tangible return.”

CEI Round four projects are well underway. Individual grants up to $200,000 were awarded to 24 companies, covering 25 projects across Queensland. These projects are due for completion in mid-2021.

Round Five of the grants will be open for submission in April.  For details and eligibility criteria go to the Guideline (PDF, 223.7KB).