SACOME Response to 2019/20 State Budget
The resources sector underpins the State’s economy and has contributed to the rise in living standards, the development of infrastructure and our economic prosperity. When the South Australian Resources Sector thrives, so too does the South Australian economy.
SACOME’s Budget submission sought to leverage ‘in-kind’ investment by Government in the form of strategic planning and legislative reform. SACOME called for a range of initiatives that aim to promote the future economic well-being of the State through driving critical investment in mineral and gas exploration; strategically mapping infrastructure requirements for resources province development; establishing new battery and photovoltaic panel recycling industries; modernising the Mining Act 1971 and harmonising State/Federal approvals processes.
Chief Executive Rebecca Knol said “We applaud the South Australian Government for the reintroduction of exploration incentives through the Accelerated Discovery Fund. Exploration incentives are a proven economic multiplier – for every $1 million invested, an additional $23 million in benefits is returned which means this is good news not only for the resources sector but for the State.
“This positive news is tempered by a number of departmental cost recovery measures. Firstly, the hike in exploration fees and charges by up to 70%. The sector remains concerned by the targeted approach of exploration tenement fee increases. This approach is unprecedented in Australia and acts to further disincentivise exploration.
“Further measures include new fees for environmental approvals. Removal of rental discounts for mining companies who own freehold land will net the department a further $7 million over the forward estimates in total. Large South Australian employers such as BHP, OZ Minerals and SIMEC Mining will be impacted by cost recovery measures and rental discounts.”
The South Australian resources sector is the engine room of the South Australian economy employing 26,000 people directly and indirectly, delivering $5.6 billion in production, almost $4 billion in exports and $237 million in royalties to South Australians.
Budget projections conclude that mineral and petroleum royalties will increase to $300 million in the coming year - 30% of these royalties will flow directly to the Royalties for Regions programme directly benefiting regional South Australians.
SACOME and its members remain committed to working collaboratively with the South Australian Government to achieve economic prosperity for the State and its residents.
Media contact: Rebecca Knol, CEO SACOME, 0409 012 007
The resources sector underpins the State’s economy and has contributed to the rise in living standards, the development of infrastructure and our economic prosperity. When the South Australian Resources Sector thrives, so too does the South Australian economy.
SACOME’s Budget submission sought to leverage ‘in-kind’ investment by Government in the form of strategic planning and legislative reform. SACOME called for a range of initiatives that aim to promote the future economic well-being of the State through driving critical investment in mineral and gas exploration; strategically mapping infrastructure requirements for resources province development; establishing new battery and photovoltaic panel recycling industries; modernising the Mining Act 1971 and harmonising State/Federal approvals processes.
Chief Executive Rebecca Knol said “We applaud the South Australian Government for the reintroduction of exploration incentives through the Accelerated Discovery Fund. Exploration incentives are a proven economic multiplier – for every $1 million invested, an additional $23 million in benefits is returned which means this is good news not only for the resources sector but for the State.
“This positive news is tempered by a number of departmental cost recovery measures. Firstly, the hike in exploration fees and charges by up to 70%. The sector remains concerned by the targeted approach of exploration tenement fee increases. This approach is unprecedented in Australia and acts to further disincentivise exploration.
“Further measures include new fees for environmental approvals. Removal of rental discounts for mining companies who own freehold land will net the department a further $7 million over the forward estimates in total. Large South Australian employers such as BHP, OZ Minerals and SIMEC Mining will be impacted by cost recovery measures and rental discounts.”
The South Australian resources sector is the engine room of the South Australian economy employing 26,000 people directly and indirectly, delivering $5.6 billion in production, almost $4 billion in exports and $237 million in royalties to South Australians.
Budget projections conclude that mineral and petroleum royalties will increase to $300 million in the coming year - 30% of these royalties will flow directly to the Royalties for Regions programme directly benefiting regional South Australians.
SACOME and its members remain committed to working collaboratively with the South Australian Government to achieve economic prosperity for the State and its residents.
Media contact: Rebecca Knol, CEO SACOME, 0409 012 007