$100m JMEI boosts ex­plo­ration

The Australian Mining Review - - NEWS: EXPLORERS ON THE MOVE - REUBEN ADAMS

LEG­IS­LA­TION in­tro­duc­ing the four year, $100 mil­lion Ju­nior Min­er­als Ex­plo­ration In­cen­tive (JMEI) was suc­cess­fully passed by the Se­nate in March.

Re­plac­ing the for­mer Ex­plo­ration De­vel­op­ment In­cen­tive (EDI), the JMEI meant green­fields ex­plo­ration pro­grams could dis­trib­ute their tax losses as a credit to Aus­tralian res­i­dent share­hold­ers.

WA Fi­nance min­is­ter Mathias Cor­mann said the tax in­cen­tive was based on in­dus­try feed­back and would en­cour­age ju­nior ex­plor­ers to take risks.

“We want to back these busi­nesses,” Min­is­ter Cor­mann said.

“We are work­ing to get the eco­nomic fun­da­men­tals right to build a strong pros­per­ous Aus­tralia, im­prove the busi­ness cli­mate and un­leash our eco­nomic po­ten­tial.”

The abil­ity of an ex­plo­ration com­pany to give up their tax losses to dis­trib­ute cred­its to in­vestors as a tax off­set will make in­vest­ing in a ju­nior ex­plorer much more at­trac­tive, Min­is­ter Cor­mann said.

“It aims to im­prove on the time­li­ness of the off­set and to tar­get new in­vestors that par­tic­i­pate in new cap­i­tal rais­ings,” he said.

“This will help max­imise the in­cen­tive for ad­di­tional in­vest­ment in min­er­als ex­plo­ration.”

As­so­ci­a­tion of Min­ing and Ex­plo­ration Com­pa­nies (AMEC) chief ex­ec­u­tive War­ren Pearce said the pas­sage of the Bill demon­strated clear bi­par­ti­san sup­port in Par­lia­ment for this leg­is­la­tion.

“AMEC has fought long and hard for the re­al­i­sa­tion of this leg­is­la­tion,” Mr Pearce said.

“The JMEI is des­per­ately needed to sup­port Aus­tralian min­eral ex­plo­ration. The de­cline in green­fields ex­plo­ration over the last decade is a sig­nif­i­cant con­cern, and one that threat­ens to un­der­mine the fu­ture growth of the min­ing in­dus­try in Aus­tralia.

“Green­fields ex­plo­ration is where Aus­tralia will make the next big dis­cov­ery that will power the Aus­tralian economy for years to come.”

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