AMEC is calling on the Federal Government to extend the Junior Minerals Exploration Incentive (JMEI) for a further four years and lift funding to at least $200 million in allocations.

It comes after the release of an AMEC-commissioned economic impact assessment report on the JMEI by BDO.

The modelling showed that, from 2017 to 2024, $182.2 million JMEI tax credits delivered a net-positive impact on the Australian economy of $769 million in GDP value, AMEC (the Association of Mining and Exploration Companies) said.

“The Junior Minerals Exploration Incentive is a significant stimulus for the exploration sector and a substantial contributor to Australia’s economy and government revenue,” AMEC chief executive officer Warren Pearce said.

“Every dollar allocated results in more than $2 spent on exploration activity and more than $6 is raised on capital markets by companies.”

Read more here: Junior Minerals Exploration Incentive (JMEI)

BDO Economics partner Anders Magnusson said there was a clear opportunity for the JMEI to do more.

“The positive historical effects of the JMEI reported here are indicative of the type of effects that can be expected in the future if the program is extended, and further positive effects can be expected from expanding the program,” he said.

“By increasing the total amount of credits available and allowing them to be used over a longer period, more businesses could benefit from the program.”

AMEC’s key recommendations for the continuation of the JMEI include:

• Extend for a further four years to 2028-29 at a minimum
• Increase support to $200 million over the four-year period
• Make the JMEI a permanent initiative in the Commonwealth Budget
• Develop a merit-based allocation process rather than first-in first-served
• Successful companies should be required to report impacts annually to the government
• Increase awareness of the JMEI and encourage more companies to apply

“We need to replenish end-of-life mines with new greenfield exploration discoveries,” Mr Pearce said.

“This is a critical investment in Australia’s future and supports mineral exploration – a long-term, high-risk activity. And by doubling the investment, you’re doubling the benefits.”

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