The budget includes $19.1 million for earth resources development within the 2013-14 financial year.
Energy and Resources Minister Nicholas Kotsiras said the funding was expected to speed up work on specific projects that have been identified as priorities and increase the on-ground oversight and technical capacity of the state to deal with highly complex mine stability issues.
As such, a further $4.2 million will be spent to address mine stability risks at major coal mines in the Latrobe Valley and funding for Clean Coal Victoria will be extended by $8.3 million over four years.
“Mining has a proud tradition of contributing to the Victorian economy and society and the coalition government is determined to ensure it has a vibrant future,” Kotsiras said.
“Our vision is for a strong and prosperous mining industry that delivers jobs and investment in regional Victoria and makes a significant contribution to the economy while respecting the rights of landholders and protecting the environment.”
The Association of Mining and Exploration Companies (AMEC) applauded the budget as “responsible” and a “long-term approach”
“This announcement highlights that the state government is taking the current need for greenfields exploration very seriously,” AMEC chief executive Simon Bennison said.
“AMEC looks forward to reviewing the government’s response to the parliamentary inquiry into greenfields exploration and mineral development in Victoria, which is due to be released shortly.
“AMEC will continue to work with government to develop policies that look towards the long-term growth of the industry.”
Mining contributes around 2% ($6 billion) to Victoria’s gross state product (GSP) and employs over 6000 people across the state through the development of commodities including brown coal, gas, gold, petroleum, mineral sands and base metals.
Victoria’s GST relativities are expected to again decline in 2014-15.
Forecast increases in mining royalties in Western Australia and Queensland should lead to a recovery in Victoria’s GST relativity from 2015-16 onwards.
The government said that as estimates for royalties in the resource-rich states were based on assumptions about commodity prices and production, deviations in outcomes would have a significant impact on the outlook for Victoria’s share of the GST pool.
Falls in global commodity prices in the middle of 2012 led to some scaling back of investment plans in Victoria’s coal and iron ore sectors.
The government said that because there might be a period before full mining production was reached, the medium-term outlook for commodity prices was positive, directly benefiting the resource-rich states and indirectly benefiting Victoria.
