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PERTH (miningweekly.com) – The Australian resources sector has welcomed the federal government's further investment of A$125-million into an exploration stimulus programme.
Federal Resources, Water and Northern Australia Minister Keith Pitt said that the investment would add to the A$100-million previously spent on Geoscience Australia’s Exploring for the Future (EFTF) programme to drive investment, generate jobs and secure the future of the resources sector.
The EFTF programme uses a series of cutting-edge geoscientific techniques to map the geological structures at unprecedented scale and detail, creating a better understanding of Australia’s mineral, energy and groundwater systems and allows the realization of Australia’s economic potential.
Pitt said expanding the programme would deliver immediate and long-term benefits to multiple sectors, including resources and agriculture.
“Investments in the resources sector are investments in jobs and opportunity, especially in regional Australia.
“The Australian government is focused on creating new jobs to help Australia recover from the impact of the Covid-19 pandemic. Our resources sector has been the standout performer over the last few months, continuing to operate safely during these unprecedented times.
“This programme will help deliver the next round of investment and job creation in our world-leading resources sector,” Pitt said.
“Even though Australia is known for its world-class mineral resources sector, over 80% of Australia is still under-explored. Over the past four years, EFTF has worked across northern Australia to deliver world-leading data about the region’s mineral, energy and water resource potential to industry, government and communities,” he said.
“We are confident of the long term impacts of the existing programme, with independent analysis of the first half the programme, indicating it could deliver just over A$2.5-billion in economic benefits and jobs in northern Australia.
“More than ever before, we need the resources and agriculture sectors to be growing and helping lead our economic recovery following Covid-19.
“The existing programme has already demonstrated significant success unlocking Australia’s resource potential in the north meaning that extending it just made sense. This will give industry, investors and the broader community a consistent, nation-wide picture of our natural resource potential.”
The Minerals Council of Australia said that further investment into the EFTF programme would support a stronger recovery and more regional jobs post Covid-19.
“With other mining nations hampered by the Covid-19 pandemic while Australian mining continues to operate, Australia’s competitors will waste no time in attempting to increase their share of the recovery,” CEO Tania Constable said on Tuesday.
“Australia’s exploration investment is likely to decrease and may take some time to recover as some commodity prices decrease substantially in response to the Covid-19 pandemic.
“Exploration investment is the foundation of Australia’s mining industry, which generates A$289-billion in export revenue, directly and indirectly supports 1.1-million jobs and contributes A$39-billion in royalties and taxes to Australian governments.”
Association of Mining and Exploration Companies CEO Warren Pearce said that the decision to re-invest in the exploration programme showed a strong commitment to the continued growth of the mining and exploration industry.
“Over the past four years the EFTF has continued to demonstrate significant success in identifying Australia’s resource potential in the north, so we are pleased to see the government increase its investment to the programme.
“This programme will bring long-term benefits to Australia and will help to attract local and international investment to Australia.
“This investment demonstrates the commitment of the federal government to support the mineral exploration industry, at a time when large parts of the mineral exploration sector have been hit hard by Covid-19,” Pearce said.
The Australian Petroleum Production and Exploration Association has also welcomed the investment, with CEO Andrew McConville saying the extension of the programme would assist explorers to continue to play a critical role in the identification and development of new energy resources.
“The challenging conditions facing the industry, both globally and in Australia, mean it is more important than ever to ensure the policy and regulatory framework facing the oil and gas industry in Australia remains competitive and encourages further exploration and development activity.
“Capturing future growth and investment opportunities, and leveraging investments to support future industry service sector growth, is rightly a key component in helping Australia recover from the economic impact of Covid-19,” McConville said.
“Transparent, open and secure access to resources for exploration and development and maintaining access to domestic and international markets on globally competitive terms is the key for long‑term industry development, and the broad community benefits it delivers.”