WA Government Allocates for Exploration Incentive Scheme Grant Recipients

Highlights:

• Western Australian Government dedicates to support exploration projects.

• Co-funded drilling, geophysics, and energy analysis receive significant funding.

• Exploration efforts focus on critical minerals and new deposit discoveries.

The Western Australian Government has allocated substantial funding to support the state’s mineral exploration sector. In the most recent round of grants under the Exploration Incentive Scheme (EIS), a total has been directed towards exploration initiatives that will help enhance the local mining industry. The funding is designed to address the financial barriers that early-stage exploration projects often face, with a focus on advancing exploration and development in critical minerals and other strategic areas.

Grant Breakdown Across Three Programs

The grants will be distributed across three key programs, each supporting different aspects of exploration activities. A significant portion, will go towards co-funded drilling initiatives, assisting exploration companies in conducting drilling programs that are essential for resource discovery. Another will be allocated for co-funded geophysics, which plays a crucial role in identifying new mineral deposits and improving geological models. The remaining will support energy analysis, providing vital information for energy-related exploration projects.

Focus on Critical Minerals and New Discoveries

The exploration efforts supported by this funding are aligned with the global demand for critical minerals. About half of the companies receiving grants for drilling activities are focusing on critical minerals, reflecting the growing importance of these materials in industries such as renewable energy and technology. In addition, a large portion of the geophysics funding is directed towards projects aimed at discovering new deposits, which is essential for the long-term sustainability of the sector.

The Role of the EIS in Supporting Exploration Projects

The EIS is a government initiative designed to help overcome financial challenges faced by exploration companies. By co-investing in drilling programs, providing pre-competitive scientific data, and supporting research and development, the EIS aims to foster innovation and growth in the exploration sector. The scheme is intended to provide valuable support to early-stage projects, assisting them in reaching their full potential and making meaningful contributions to the state’s mining industry.

Statements from Industry Leaders

The Western Australian Government has emphasized the importance of the EIS in strengthening the local mining industry. Mines and Petroleum Minister David Michael highlighted that the initiative plays a pivotal role in overcoming the financial hurdles that can impede early-stage exploration. He noted that the funding ensures that these projects can thrive and help build a sustainable future for the state’s mineral wealth.

The Association of Mining and Exploration Companies (AMEC) has also praised the EIS, with Chief Executive Warren Pearce noting the significant economic returns generated by the scheme. According to Pearce, each million dollars invested through the EIS generates an estimated return to the state’s economy. He further emphasized that exploration companies are essential for identifying the mines and technologies that will drive future growth and technological advancements in the mining sector.

Key Recipients of the Latest Round of Funding

The latest recipients of EIS grants include a range of ASX-listed exploration companies, all of which will benefit from the government’s support to advance their projects. Some of the recipients include notable names such as Ausgold, Black Cat Syndicate, Cannon Resources, Encounter Resources, Gold Road Resources, and Mineral Resources, among others. These companies are involved in various exploration activities, from drilling programs to geophysical surveys, all aimed at advancing resource discovery in Western Australia.

EIS History and Future Plans

Since its inception in 2009, the EIS has provided over $100 million in grants to support exploration projects in Western Australia. The scheme is managed by the Department of Energy, Industry Regulation, and Safety and will soon transition to being managed by the Department of Mines, Petroleum, and Exploration, under the Geological Survey of Western Australia. This transition aims to streamline operations and further enhance the effectiveness of the EIS in supporting the growth of the mining and exploration sector in the state.

The ongoing commitment to the EIS underscores the Western Australian Government’s dedication to ensuring the long-term success of its exploration industry, which remains a vital component of the state’s economy.