NEWS
MINERALS  

Mineral exploration in Australia: Good News

On the exploration front, there have been two items of good news this month.

Exploration increasing

First, mineral-exploration expenditure is increasing in Australia, following the low reached last year.

In terms of minerals, gold remains the dominant sector, accounting for approximately 45% of total exploration expenditure.

But this year, there has been an encouraging increase in expenditure on base metals (e.g. copper, nickel, zinc).

In terms of states, Western Australian accounts for about two-thirds of exploration expenditure.

But since last year, there has been a jump in New South Wales, which (apart from coal) has gold and base metals. Expenditure in Queensland, the second-most important mining state, has been steady (albeit at a much lower level than during the boom years).

The increase in exploration expenditure is consistent with other indicators (e.g. strong export growth, improving supplier activity) that mining, battered by the downturn of the last few years, is turning around.

Government encouragement of exploration

Second, the Prime Minister, Malcolm Turnbull, announced on 2 September that the government is to commit A$100 million to encourage exploration by junior mining companies (meaning in this context small-to-medium-sized companies that focus on exploration).

Under the scheme, “Australian resident investors will receive a tax credit where the exploration company chooses to give up a portion of their losses relating to their greenfields exploration expenditure in an income year”.

As explained by law firm Gilbert + Tobin, “this important tax benefit takes deductions from an exploration company and passes them to investors as a credit against tax payable on other income”.

The trouble facing a junior mining company is that it “is likely to have no income for many years until it turns a profit from a successful mine and therefore does not benefit from deductions” until this occurs (which in many cases it never does).

The mining industry has been pushing for such a scheme for some years. It is based on the so-called “flow-through share” scheme that operates successfully in Canada. 

 

News No: 1297
Date: 2017/09/13 - 17:16
News Source: mining.com

Mineral exploration  Australia  Malcolm Turnbull  Gilbert + Tobin 

Comments:

Leave a Comment:

   
   
   
 

China steel surges as more output cuts seen; iron ore, coal jump

Chinese iron ore futures jumped more than 5 percent on Friday, getting a boost from a rally in steel prices on expectations of more production cuts in the world's biggest steel producer as China intensifies its smog war over winter.
 

Iron ore dangerously close to $60 a tonne

Iron ore prices continued their downward trend Tuesday amid ongoing concerns that looming steel production cuts in China on environmental grounds will sap steel mill demand.
 

BHP Billiton Returns to Profit

The world’s largest mining company, BHP Billiton, has reported a considerable rebound in underlying and operating earnings. The firm noted it had profited from soaring iron ore prices and improved productivity.
 

Iron Ore, Coal Boosting Australia Economy

Australia’s economy is likely to stay upbeat after the country on Friday reported a surprise A$1.243 billion ($912 billion) trade surplus in November—the first in almost three years—as bulk commodity exports beat the market forecast of A$500 million deficit seen by analysts polled by Reuters.
 

Iran looks beyond Guinea mine project to secure bauxite supply

MELBOURNE Nov 8 (Reuters) - Iran is looking beyond a long-held project in Guinea to secure bauxite supplies, including from Australia, as the country ramps up its aluminium production, a manager at a state-owned Iranian mining development company said.
 

Outotec awarded an order for a mine backfill plant in Australia

Outotec has been awarded an order by MMG Limited to design and deliver a paste backfill plant to MMG's Dugald River zinc mine in North-West Queensland, Australia.
Upcoming Events
Find a Job !
Tenders
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners