The Queensland Exploration Council (QEC) has welcomed the decision by the Federal Government to incentivise new investment in exploration through the Junior Mineral Exploration Tax Credit scheme (JMETC).
Totalling $100 million, the scheme will allow tax losses in greenfield exploration companies to be allotted as a credit to Australian resident shareholders over the next four years.
QEC Chair Brad John said while Queensland had a rich history of exploration there was still a lot more potential for future discoveries.
“There may be a perception that Queensland is a mature exploration destination but that can’t be further from the truth and I’m pleased to say this initiative will help junior explorers to find untapped resources in Queensland,” Mr John said.
“The BDO’s Explorer Quarterly Cash Update in July showed improvements in sentiment for the June 2017 quarter with increases in the average estimated cash outflows of explorers. The update also pointed to an increased number of capital raisings for small juniors which is leading to a more positive cash position in the March 2017 quarter.
“It’s encouraging to see both the federal and state governments supporting the exploration industry after the Queensland Government’s release of the North-West Minerals Province blueprint to entice both domestic and overseas investment in July.
“The Association of Mining and Exploration Companies (AMEC) and particularly outgoing chief Simon Bennison are to be congratulated for all their efforts in advocating for this initiative,” Mr John said.
The JMETC replaces the Exploration Development Incentive (EDI) which finished earlier this year.