The State Government’s decision to continue funding the Exploration Incentive Scheme (EIS) at a rate of $10 million a year has come at a critical time for the Western Australian resources industry, according to The Chamber of Minerals and Energy of WA (CME).
CME Acting Chief Executive Nicole Roocke said the EIS, which aims to encourage exploration in WA for the long-term sustainability of the State’s resources sector, was vital for providing an incentive for resources companies to explore greenfields areas and facilitate new mineral discoveries in uncharted regions.
“The long-term future of the resources sector in Western Australia requires a healthy pipeline of active exploration of the State. Critical to achieving this aim is ensuring policies that advance exploration through incentives or credits,” Ms Roocke said.
“After falling to decade-low levels, exploration expenditure in the State is beginning to show some positive growth and confidence is returning to the sector.
“As the continuation of the EIS has been subject to an internal government review, CME has strongly advocated a compelling case for its continuation through economic modelling and highlighting a proven track-record of the EIS role in many significant mineral discoveries.
“We congratulate the WA Labor Government for its commitment to this important initiative and for recognising the significant role it plays in encouraging future investment in the WA resources sector.”
Since its inception in 2009, the EIS has offered funding to more than 590 projects, resulting in more than 430,000 metres of drilling across the state.