The inquiry addressed key issues including reducing duplications, streamlining environmental and heritage approvals processes through bilateral agreements and rescinding the “water trigger” amendments to the Environmental Protection and Biodiversity Conservation Act.
Recommendations included that regulators of exploration activity should create public accessible databases for licence information and that governments ensure their exploration agencies should proactively guide proposals and related applications through the approvals process.
The report also advised that governments only set requirements related to exploration that were minimally necessary to meet policy objectives and proportionate to the impacts and risk associated with the exploration activity.
The Association of Mining and Exploration Companies said the inquiry echoed many of the concerns of the industry and offered a “sensible blueprint” for regulators to implement leading practice regulation for exploration.
Release of the report coincided with the Fraser Institute’s 2013 annual global survey of mining executives, which found an overall positive trend for Australian exploration investment sentiment.
According to the survey, Australia increased from a combined average of 30th (of 112) in 2012-13 to 22nd (of 96) in 2013-14.
“Nonetheless, this increase in Australia’s overall rank of investment desirability must now translate into more initial public offerings for Australian based mineral projects,” AMEC president Will Robinson said.
“There were only 12 in 2013 and two so far this year – well below the high of 126 in 2007.
“The implementation of the Productivity Commission’s recommendations along with the repeal of the carbon tax and mining tax would provide a much-needed boost to the mining and mineral exploration industry.”
Robinson’s comments follow immediately on a report published on Wednesday by AMEC stressing the importance of an exploration development incentive as total expenditures decline.
AMEC cited the decrease in greenfields exploration as the primary driver of a 27.5% drop in spending and a 33% drop in metres drilled over the December quarter.
It takes on average seven years to convert a discovery into an operating mine, according to research undertaken by the University of Western Australia.
“Investors are looking for positive signs through federal government policy changes such as the repeal of the carbon tax and mining tax; exploration deductibility; employee share schemes; and streamlining approvals processes,” AMEC said.
“We must take action now to secure the mines of tomorrow and revenue streams for the benefit of all Australians.”
