South Australia’s Future Minerals Industry Further Eroded
The South Australian Chamber of Mines and Energy (SACOME) notes the announcement today that the South Australian Government has increased licence fees for mining and exploration companies by a flat rate of 5% and has additionally singled out companies working in the most mineral-rich areas of the state, hiking costs by almost 70%.
The sector is deeply concerned by the targeted approach of exploration tenement fee increases. This approach is unprecedented in Australia and penalises the companies who already heavily invest in high-cost exploration.
Rebecca Knol, Chief Executive Officer said “Exploration investment is critical in the discovery of new deposits and ensuring a continuing pipeline of resource projects. Investment in exploration in the state is at an all-time low and this fee increase acts to further disincentivise exploration in two of the most prospective regions of our state – Olympic Dam and Gawler Craton.
“The South Australian resource 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".
Media contact:
Rebecca Knol, CEO SACOME, 0409 012 007
The South Australian Chamber of Mines and Energy (SACOME) notes the announcement today that the South Australian Government has increased licence fees for mining and exploration companies by a flat rate of 5% and has additionally singled out companies working in the most mineral-rich areas of the state, hiking costs by almost 70%.
The sector is deeply concerned by the targeted approach of exploration tenement fee increases. This approach is unprecedented in Australia and penalises the companies who already heavily invest in high-cost exploration.
Rebecca Knol, Chief Executive Officer said “Exploration investment is critical in the discovery of new deposits and ensuring a continuing pipeline of resource projects. Investment in exploration in the state is at an all-time low and this fee increase acts to further disincentivise exploration in two of the most prospective regions of our state – Olympic Dam and Gawler Craton.
“The South Australian resource 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".
Media contact:
Rebecca Knol, CEO SACOME, 0409 012 007