The modest cash increase to the $1.1 billion of initiatives outlined in the government’s National Innovation and Science Agenda will fund the geoscience body’s Exploring for the Future program to produce more pre-competitive geoscience data over northern Australia and South Australia, to be released on an annual basis over the next four years.
Geoscience Australia estimates that around 80% of Australia remains underexplored, in particular, areas in the key resources regions of the Northern Territory, Queensland, Western Australia, and SA.
The funds will primarily be used for mapping mineral, energy and groundwater potential.
“This will improve Australia’s long term exploration prospects and help address declining new onshore exploration,” Resources Minister Josh Frydenberg said last night.
“The resources sector continues to play an important role in our economy, representing around 10% of Australia’s GDP and more than 50% of our exports.
"At a challenging time for the resources sector, this important initiative will help ensure that Australia’s strength in innovation is furthered, and that we maintain our competitive edge in this world-leading sector.”
He said the benefits of investing in Geoscience Australia were clear as data compiled across SA in the 1960s, costing around $350,000, helped identify the resource potential of the giant Olympic Dam copper-gold-uranium mine and ultimately to the discovery of ore more than 300m underground in one of Australia’s most exciting minerals provinces, also home to OZ Minerals’ Prominent Hill and Carrapateena deposits.
Law firm Grant Thornton was pleased to see some support for the struggling junior mining sector after repeatedly expressing concern over falling exploration expenditure.
“The junior mining and exploration sector, which comprises around a third of all ASX listed companies, has experienced such challenging conditions in recent years,” Grant Thornton national energy leader, energy and resources Holly Stiles said.
“Amidst the negative sentiment, one positive trend for Australia in the past year or two has been a refocus by junior miners and explorers on Australia as a location for future project opportunities.
"Additional support in identifying new greenfield exploration potential is a welcome outcome for the junior mining sector.”
Queensland Resources Council CEO Michael Roche said the extra funding would help his state further benefit from the investment, which would outperform other sectors, and he said extra geoscience data would help define the next wave of mines and help develop new high-tech jobs.
“Exploration is the R&D, or building blocks, for the resources sector, getting the sector ready for the inevitable future upswing,” he said.
Roche also welcomed the reduction in the corporate cut to help improve the economy's competitiveness, promoting jobs and investment and a $594 million commitment to researching and acquiring land for an inland rail network connecting Brisbane to Melbourne, and linking south-east Queensland with Perth and Adelaide, but he was disappointed that the government is set to commit to a genuine competitive process for the 1700km freight line.
