PERTH (miningweekly.com) – The Western Australian government on Thursday announced plans to increase the Exploration Incentive Scheme (EIS) by A$2.5-million a year from A$10-million to A$12.5-million.   

Starting in 2021/22, the increase in EIS funding will further incentivise investment in Western Australia's mining industry. 

"Western Australia's mining industry is thriving, so it's important that we strike while the iron is hot,” said Mines and Petroleum Minister Bill Johnston.

"This additional funding to A$12.5-million a year could help find the next big resource discovery, which in turn leads to new mines and new jobs for Western Australians.”

As part of the Western Australian Recovery Plan, the EIS received a one-off funding of A$5-million in 2020/21, which temporarily increased the EIS budget from A$10-million to A$15-million. 

For the past two EIS rounds, the Department of Mines, Industry Regulation and Safety has received a significantly higher number of applications. 

Previous EIS success stories include the discovery of the Nova nickel mine, the Tropicana gold mine, Gruyere gold mine and most recently the Bellevue gold project.

A recent independent study, covering the first 10 years of the EIS, reiterated the robust economic benefits of the EIS, with every dollar invested resulting in a A$31 return.  

The EIS programme is open to applicants twice a year and offers up to a 50% refund for innovative exploration drilling projects.

Applications for round 24 of the EIS opened earlier this month, offering A$5.25-million in co-funding for exploration projects in the region. Applications for this round of funding will close on August 27.

The Association of Mining and Exploration Companies (Amec) welcomed the additional funding for the EIS, with CEO Warren Pearce saying that the increase in funding, along with the recent allocation to support the approvals process, demonstrated the state’s strong support for the sector.

“The co-funded drilling programme helps exploration companies leverage matching private funding to undertake greenfield exploration, helping to bringing much needed additional investment into Western Australia,” said Pearce.

“The EIS is a highly successful State Government programme that encourages greenfield exploration, and this is a significant reason Western Australia continues to be the leading jurisdiction in the rankings in the Fraser Institute Survey.”

The Chamber of Minerals and Energy for Western Australia has also welcomed the announcement, with CEO Paul Everingham saying that exploration was critical in the long-term success of the mining and resources sector.

"Projects around the State, which provide jobs for hundreds of thousands of Western Australians and so many community and economic benefits, all have to start somewhere – and that start is often exploration.

"The Nova nickel mine, the Tropicana gold mine, Gruyere and the Bellevue gold project have all originated from the EIS. We look forward to this funding increase helping pave the way for future operations that will add to the A$1 400-billion of projects currently in the Western Australian mining and resources pipeline.”