- Exploration Incentive Scheme funding for resources companies to continue
- State Budget secures scheme's continuation creating future job opportunities in the sector
- Annual mining tenement rents to increase to secure EIS
The McGowan Labor Government will provide certainty for the $10 million per annum Exploration Incentive Scheme (EIS).
The scheme has been extended from 2019-20 to benefit the Western Australian mining and resources industry, and is available for companies seeking support to explore mineral deposits and frontier petroleum basins in remote underexplored regions.
A co-funding arrangement for companies to undertake drilling and pre-competitive geoscience work will continue for a total of $5 million per annum. The remaining $5 million will be for the acquisition of high-quality, pre-competitive geoscience data, which will be freely accessible to industry, supporting the long-term viability of the State's resources sector.
Historically, for every $1 million invested through the EIS, the scheme generates $10.3 million in exploration activities.
In 2018-19, a six per cent increase in tenement rents will raise $5 million and an additional six per cent increase in 2019-20 will meet the ongoing scheme funding requirement of $10 million per annum, and improve and enhance the quality of services for industry provided by the Department of Mines, Industry Regulation and Safety.
For the first three years of an exploration license (graticular blocks), rents will only increase by 1.5 per cent in 2018-19 and 2019-20 to protect the junior sector in finding the deposits of the future.
For more 2018-19 State Budget information, visit http://www.ourstatebudget.wa.gov.au
Comments attributed to Mines and Petroleum Minister Bill Johnston:
"The McGowan Government has been a strong supporter of the scheme and to safeguard it for the benefit of industry, it needs to be funded effectively.
"The EIS greatly assists mining and resources exploration in Western Australia, and supports a range of employment opportunities. It is pleasing that certainty will be provided for the mining and resources industries on the continuation of the EIS.
"The budget associated with regulating and supporting WA's resources sector is approximately 54 per cent funded by taxpayers, while 46 per cent is funded by mining and resources companies."
Minister's office - 6552 6700