News that no less than 42 drill rigs are parked in the Goldfields without work sends a clear message that securing future mining sector exploration and growth must be a priority for governments.
The Chamber of Minerals and Energy of Western Australia (CME) has been calling for incentives similar to the Canadian flow-through share scheme, such as a mining exploration tax credit (METC), to boost the flagging exploration sector.
“To establish a future pipeline of projects we rely upon increasing the current level of exploration activity here in Western Australia,” said CME Chief Executive, Reg Howard-Smith.
The Shadow Minister for Energy and Resources’ visit to Kalgoorlie this week provided a good opportunity for to hear the views of drillers and exploration companies about the current state of the sector.
CME welcomes comments from Mr MacFarlane that the Opposition is considering the implementation of a mining exploration tax credit to encourage investment in exploration activity.
“It would be a real confidence boost to explorers to see an iron-clad commitment from the Liberal Party to pursue this policy in its election campaign,” said Mr Howard-Smith.
Locally, the Western Australian Government is focused on boosting exploration activity through its Exploration Incentive Scheme. Programs such as these are welcomed by the resources sector and will deliver a significant return to the people of Western Australia.
“Australia needs to remain an attractive destination for exploration and the development of resources projects to deliver ongoing prosperity to all West Australians,” said Mr Howard-Smith.
As we move closer to a federal election, CME looks forward to a serious policy discussion across all major political parties about how to reduce the costs of doing business and strengthen the Australian resources sector’s international competitiveness.