PERTH (miningweekly.com) – The Australian resources sector has welcomed the federal government’s investment plans unveiled in the latest Budget.

Federal Resources, Water and Northern Australian Minister Keith Pitt noted that the 2020/21 Budget contained measures to support a gas-fired economic recovery, initiatives to strengthen the resources and exploration sectors, and investment in regional communities undergoing water reform.

“The government will ensure Australia continues to be a major gas exporter while also delivering affordable gas to the domestic economy and strengthening the reliability of our electricity network,” Pitt said.

“As part of our gas-fired recovery plan, the 2020/21 Budget includes A$28.3-million to develop five Strategic Basin Plans which will unlock and accelerate the development of vast gas reserves, increase domestic supply and lower prices for households and businesses. This will start with plans for the Beetaloo basin in the Northern Territory and the North Bowen and Galilee basins in Queensland.

“In addition, the government is providing A$13.7-million over four years to provide quality assured scientific research and information to communities living in gas development regions through the Commonwealth Scientific and Industrial Research Organisation’s Gas Industry Social and Environmental Research Alliance.

“This complements investments by the Minister for Energy and Emissions Reduction in an inaugural National Gas Infrastructure Plan, as well as gas regulatory reform initiatives.”

Also in the resources sector, the Budget includes A$124.5-million to fund an expanded Exploring for the Future programme.

Pitt noted that the programme, operated by Geoscience Australia, would deliver detailed data on potential resources in vast areas that have yet to be fully explored, and that this additional funding would help unlock new resources along two major corridors identified as resource-rich in both western and eastern parts of Australia.

Meanwhile, reforms for the Northern Australia Infrastructure Facility (NAIF) will ensure the A$5-billion facility will have more flexibility to bankroll investment in a wider range of projects across northern Australia, and will speed up investment approvals.

This was in addition to the July announcement of a five-year extension to the NAIF until June 2026.

The Budget also contains an additional A$41.5-million to support NAIF’s operations following the decision to extend NAIF.

“The Australian government is committed to creating jobs across northern Australia to help the region play a stronger role in Australia’s economic recovery,” Pitt said.

“We are empowering the NAIF to accelerate lending and providing greater flexibility in how it can support projects driving economic and population growth – during the challenging business environment due to Covid-19.

“We are determined to open up further opportunities to strengthen northern Australia’s contribution to our economy by continuing to support infrastructure and development.”

Meanwhile, the 2020/21 Budget also includes A$3.5-million over two years to fund preliminary rehabilitation works at the former Rum Jungle copper and uranium mine in the Northern Territory. The funds will support land management and training jobs for local Indigenous communities.

The Minerals Council of Australia (MCA) said the federal Budget confirmed that mining would contribute strongly to Australia’s return to growth, continuing its significant contribution to the tax income that funds health, education and security.

“Mining investment is forecast to grow 5.5% this financial year, carrying the load while other parts of the economy reset for the future,” said MCA CEO Tania Constable.

“Mining companies had already mapped new opportunities for education and training of existing and future workers, and the industry welcomes the support in the Budget for this response.

“The government’s employment support scheme, JobMaker, provides welcome initiatives, notably the temporary full expensing of capital assets, temporary loss carry-back, wage subsidy for apprentices and changes to the research and development tax incentive. This will accelerate job creation and investment.

“And the significant role of mining in innovation and future industries is recognised through co-investment in resources technology and critical minerals processing, support for low emissions technology, including carbon capture and storage, and targeted initiatives to support the energy market,” Constable said.

She noted that additional funding to ensure timely approvals and progress reforms to the Environment Protection and Biodiversity Conservation Act 1999 would support industry investment and expedite projects.

“The industry will continue to support investments expanded in the budget for specific training for Indigenous youth.”

The Association of Mining and Exploration Companies (AMEC) said the Budget was a ‘bold national commitment’ to Australia’s recovery and economic future.

“The Budget provides vitally needed financial support programmes, individual and business tax relief, matched with investment in long term economic infrastructure that will support Australia’s growth now and into the future,” said AMEC CEO Warren Pearce.

“The Budget rightly focuses on supporting those Australians most impacted by the Covid pandemic.

“The mining industry has helped carry Australia’s economy through this challenging period and will be supported to continue growing. Industry can expect to benefit from a wide range of commitments in this budget.”

The Australian Petroleum Production and Exploration Association (Appea) said the federal Budget had reaffirmed the importance of increasing investment into the Australian economy, as well as the significant contribution that the oil and gas industry would play in supporting economic recovery.

Appea CEO Andrew McConville said the Budget acknowledged investment was a central pillar to recovery and the oil and gas industry had a clear plan to support the government in driving job creation, skills development and promoting domestic spending and investment across all industries.

“The Budget, together with the government’s previous announcements on energy and technology, recognises the pivotal role of Australia’s oil and gas industry in providing energy security for homes and businesses and making a sustained contribution to government revenues,” McConville said.

“The Budget is another important step in helping unlock the next wave of investment that will underpin Australia’s economic recovery out of the Covid-19 recession.”

The funding announced in the Budget was in addition to the A$1.5-billion already flagged for a Modern Manufacturing Strategy to support Australian manufacturing to scale-up six priority areas, including resources technology and critical minerals processing, and A$1.2-billion in funding to create 100 000 new apprenticeships and traineeships, with a 50% wage subsidy for businesses which employ them.