The Investment Attractiveness Index is a composite index that combines both the Policy Perception Index and results from the Best Practices Mineral Potential Index.
While Australia as a whole is on top of the world for investment attractiveness, more can be done at the federal, state and territory levels to increase mineral exploration and reduce the operating cost environment, according to AMEC CEO Simon Bennison.
“Most Australian jurisdictions ranked lower on the Policy Perception Index indicating that their mineral potential – which receives a higher weighting in the calculation – increases their overall investment attractiveness,” Bennison said.
This is important to consider as there is still much more to be done to reduce the regulatory burden, duplications and processing delays.
“New South Wales was the lowest ranked Australian jurisdiction on the Policy Perception Index at 51/109 behind Victoria at 43/109,” Bennison said.
“Making the overall development approvals process through the many government departments more efficient and effective would go a long way to improving both of these objectives.
“The recent announcement by the Queensland government that eligible mineral explorers will now be able to reduce their exploration permit expenditure requirements by up to 50% over the next two years is positive news. AMEC is seeking similar flexibility and concessions in other jurisdictions.
“AMEC has been working with the Western Australian government to reduce red tape and made over 30 recommendations in its submission to the Minister for Finance. These are still under consideration by the government.
“The continuation of the various state and territory co-funded drilling programs are another positive initiative and should be fully supported, as is pre-competitive geoscience data. These will promote more exploration.”
The first round of the federal government’s Exploration Development Incentive saw 84 Australian companies receiving a share of $21 million to distribute to their shareholders in the form of a direct tax offset.
“The EDI has two more years to run and will further increase greenfield exploration which is essential to make new discoveries that will become the mines of tomorrow to provide jobs and Government revenue streams for the future,” Bennison said.
