EMR Capital Urges Greater Support for Junior Explorers Amid Strong Outlook for Mining Sector | ASX 200 Resource Index

Highlights:

• EMR Capital Chairman Owen Hegarty emphasizes the need for enhanced government cooperation with junior mining explorers

• Exploration incentives and downstream processing tax credits highlighted as key priorities

• EMR Capital maintains diversified mining interests across Australia and the Americas

The mining sector, a key contributor to the ASX 200 Resource Index, continues to experience robust development with strong ties to global economic trends. EMR Capital, a private equity firm focused on mining and resources, is advocating for stronger cooperation between government bodies and the junior exploration segment of the industry. Chairman Owen Hegarty, speaking ahead of GRX25, pointed to the current level of federal and state support as generally positive but in need of further bolstering.

Hegarty noted that while larger corporations benefit from established frameworks and resources, smaller exploration companies often face challenges in securing capital and regulatory support. He emphasized the essential role of junior explorers in discovering new deposits critical for future mining operations.

Exploration Incentives and Long-Term Growth Drivers

With rising urbanization, increased demand for energy transition materials, and the impact of digitization, Hegarty anticipates continued growth in global demand for minerals. These trends are expected to reinforce the mining sector’s contribution to Australia's economic development.

The Australian government’s Critical Minerals Production Tax Incentive, which offers tax credits for downstream processing, was acknowledged as a positive move. However, the industry has expressed concern about the planned expiration of the Junior Minerals Exploration Incentive, calling for its renewal to support early-stage exploration.

Hegarty also suggested that Australia consider adopting a scheme similar to Canada’s flow-through shares, enabling investors to deduct exploration costs on their tax returns, which would enhance capital access for junior miners.

Strategic Investments Across Key Projects

EMR Capital maintains an extensive portfolio across commodities such as copper, gold, potash, and metallurgical coal. In Australia, its notable interests include 29Metals Ltd (ASX:29M) operations at the Capricorn Copper-Silver Mine in Queensland and the Golden Grove Mine in Western Australia. It also holds stakes in the Ravenswood gold mine and the Kestrel coal mine, both in Queensland.

Internationally, the firm has investments in Peak Minerals Ltd’s (unlisted) project in Utah and Redhill Mining (private), which has copper and silver prospects in Chile. Hegarty highlighted that foreign capital inflows into Australia remain steady, with interest from China, India, Indonesia, and the United States.

Global Capital Flow and Industry Partnerships

Hegarty underlined the continued interest from international partners in Australia’s mining industry. He cited recent large-scale transactions involving Indonesian firms and sustained engagement with US-based entities as signs of resilient capital availability and investor confidence.

Despite broader geopolitical shifts, business-level relationships remain stable, and the flow of foreign funds into Australia’s resources sector continues to play a vital role. EMR Capital’s experience reflects this trend, as it attracts backing from a broad mix of offshore investors.

Outlook for GRX25 and Mining’s Role in the Economy

Scheduled to speak on the second day of the Global Resources Innovation Expo (GRX25) in Brisbane, Hegarty will address mining’s significance in Australia’s historical and future economic success. GRX25 aims to foster dialogue and collaboration within the resources sector, with a focus on innovation and sustainability.

The event underscores the critical role of mining in Australia’s economic fabric, highlighting the importance of continued support for exploration, infrastructure, and policy alignment to secure future growth and global competitiveness.