Groundwork for rent relief
Bill to support mining companies
A NEW concession to promote more mining businesses in the regions could soon see the mining sector grow if the state government’s latest legislation is successful.
The legislation allows critical minerals projects to defer their initial rent payments on government ground in order to alleviate the financial burden of setting up a mining project, resources Minister Scott Stewart said.
“Miners will be able to direct all their funds into their project during a time when cashflow is really critical,” he said.
“Rent bills in the first year can be hundreds of thousands of dollars, during a period when a mine isn’t yet generating much income.
“Not having to pay this rent until the fourth year of the mine’s life will support a sector that will take Queensland’s resources industry and its workforce into the future.”
The bill, The Coal Mining Safety and Health and other
legislation amendment bill 2022, will still need to pass a review conducted by the Transport and Resources Committee before it becomes law, but Mr Stewart said the proposal had been ‘ welcomed’ by the wider industry.
The resources Minister sat down with the resources industry advisory body for the first time in Townsville on Friday to chair a meeting where the Queensland government’s outlined 30-year plan for the resources sector was the focus.
Association of Mining and Exploration Companies chair Sarah Gooley said the proposed change to rental payments would allow critical mineral explorers to progress quicker and ‘maximise’ cash flow. “A number of our members who are vanadium explorers who will eventually become vanadium mines will access initiatives like that from the Queensland government,” Ms Gooley said.
“It shows the Queensland government is willing to do business differently and that they’re keen to work in partnership with the industry to develop solutions.”
AUSIMM Chief Executive Officer Stephen Durkin said the resources sector in the north of Australia was well positioned to represent the region on the international stage.
“We see an abundance of those critical minerals in this part of Australia, we also see a very skilled workforce here in the region,” Mr Durkin said.
“It’s of interest not just on behalf of the country, but also of interest internationally, so we see this as a huge opportunity.”