The government stressed an effort to fast-track exploration with a $4 million pledge over two years to the state’s PACE program, a resources development initiative launched in 2004 that has helped improve investment in SA exploration to more than $300 million.
The allocation brings total PACE funding over the budget period to $28 million.
Premier and Treasurer Jay Weatherill also said that $6 million over four years would support a Mining and Petroleum Services Centre of Excellence, an extension of PACE expected to build resources of pre-competitive geo-scientific data.
Weatherill called for the new program to bring together major resource companies, mining services companies and university expertise to solve problems related to unlocking the state’s resource potential.
“Exploration is a risk-taking venture,” he said.
“Using pre-competitive geo-scientific data to narrow down exactly where to place the next drill hole puts explorers in a better position to unearth the next great discovery.
“This funding will help us to continue to unlock the secrets of the Gawler Craton, where we expect much of our next great mineral discoveries of gold, copper and uranium will be found.
“PACE will also continue to partner explorers in their drilling programs to stretch their investment in its exploration programs”
The budget also outlaid $588,000 over two years to fund the Eyre Peninsula Land Use Support program which will work to improve relationships between exploration companies and the local communities of region.
“This government has a global reputation for supporting the risk takers who with every new drill hole are hopefully bringing us closer to the next major discovery,” Weatherill said.
“But we also want to continue to support the innovators, who will define the way we explore, drill and extract resources in the future”
Weatherill noted that as explorers begin to target freehold framing districts in mineral prospective areas such as the Eyre Peninsula, positive engagement between parties at an early stage was needed.
“South Australia's economic future prosperity requires both of these two major key producers to co-exist,” he said.
“This is an important program that will address perceived conflicts between farming and mining and exploration."
The program is a joint initiative with the South Australian Chamber of Mines and Energy (SACOME), which welcomed the budget announcements today.
SACOME chief executive Jason Kuchel applauded continued government support for PACE and said the injection of funds would help establish the state as a significant global jurisdiction for research and innovation in the resources sphere.
“The establishment of a Mining and Petroleum Service Centre of Excellence will add to our impressive portfolio of world class research centres and help to cement South Australia’s reputation in this area,” he said.
Kuchel also commended the budget’s payroll tax concession of $21.6 million over two years.
“The reduction in payroll tax will positively impact many of our members,” he said.
“Most resources companies in this state are not the big players and this reduction, although small in comparison to the high costs and risks involved in exploring, is a welcome extra for companies doing it tough.”
Kuchel said significant changes were required at federal level to boost flagging investment into the sector nationwide.
“Investor sentiment, particularly in regards to mineral exploration, is at its lowest level in more than a decade” he said
“Both major federal parties must commit to implementing policies to turn this around, in particular with the introduction of an exploration tax credit similar to the scheme operating in Canada, which is credited with much of that country’s exploration investment attraction.”
“Our federal government needs to recognise the importance of this sector to the economy and take the necessary steps to ensure it continues to prosper.”
