PERTH (miningweekly.com) – The Association of Mining & Exploration Companies (Amec) has accused the Queensland government of overlooking the minerals explorations sector in its most recent Budget.

The state government on Tuesday revealed a Budget that provided for a A$962-million operating surplus in 2014/15, rising to A$1.2-billion in 2015/16. The surplus was achieved despite a forecast write-down of royalty revenue of A$3.2-billion since the Mid-Year Financial and Economic Review, as the decision was taken not to increase royalty rates.

State Development and Natural Resources and Mines Minister Anthony Lynham also pointed out that the government had set aside some A$29.7-million to support drought-affected landholders and the resources sector.

Under this initiative, some A$6.2-million would go towards the Abandoned Mines Land Programme to manage the public safety risks associated with abandoned mine sites across Queensland, while a further A$3.6-million would go to fund compliance activities by the Coal Seam Gas (CSG) Compliance Unit; including investigation of land-holder concerns about the impact of CSG operations.

The government was also investing A$13.7-million, including A$7.8-million in capital funding, to modernise and enhance departmental online services to deliver faster service outcomes and make it easier for people to do business with the Department of Natural Resources and Mines, and a further A$2.2-million to address immediate native title trial costs and help accelerate the resolution of all outstanding Queensland native title claims through the Federal Court.

However, Amec CEO Simon Bennison has expressed concern over the government’s decision to cease funding for the collaborative drilling initiative, as well as the Geological Survey of Queensland’s future resources programme.

“This will make Queensland the only Australian jurisdiction without a co-funded drilling programme to encourage exploration. Exploration is the key to making new discoveries that will become the mines of tomorrow to generate jobs and revenue streams for the benefit of the state,” Bennison said.

“The programme has demonstrated significant economic value and returns to the state over the past nine years. For the A$5.56-million that has been provided to 48 companies since 2006, these companies have spent more than A$17.3-million on exploratory drilling.

“Further evidence of the benefit of this programme is an independent economic impact study into the exploration incentive scheme in Western Australia. It revealed that every A$1-million invested in the programme generated A$10.3-million in direct benefits for the state,” he added.

Despite the criticism, Bennison said it was positive that the government was spending funds to modernise and enhance departmental online services to deliver faster service outcomes and improve dealings with the Department of Natural Resources and Mines.

“Amec has been advocating for integrated online application and tracking systems to enhance the transparency, accountability and timeframe processes. The government has recognised the value this provides, not only to industry, but to government in reducing ongoing administration costs.”

Bennison added that it was also positive to see the state government commit to developing a pipeline of priority infrastructure projects to inform Queensland’s current and future infrastructure needs and priorities, with Bennison saying that consultation with industry was essential to drive the maximum investment potential from this.

“The regional infrastructure fund for critical infrastructure in regional Queensland could also contribute to increasing the attractiveness for investing in regional Queensland.

“These initiatives have the potential to deliver a holistic and integrated approach to Queensland’s infrastructure as long as adequate consultation between industry and government is afforded.”