South Australia offers relief for explorers

Minister for Energy and Mining Dan van Holst Pellekaan said the impact of travel restrictions and social distancing on the operation of the state’s mining and petroleum sectors has been significant.
Advertisement

“To meet this challenge head-on the South Australian government will defer a suite of industry licence fees. The government has implemented an immediate deferral of mineral exploration licence fees and annual petroleum and geothermal licence fees due in the next six months. These licence fees will now not be due until 31 December 2020.

“In addition, there is a 12-month waiver of committed expenditure for all mineral exploration licence holders as well as an expansion of allowable expenditures towards minimum Petroleum Retention Licence requirements during a period of low oil prices.
Advertisement

“These economic measures will provide the mining and petroleum sectors in South Australia with some financial relief and help support the state`s economy to respond to the difficulties posed by the coronavirus containment measures,” the Minister said.

He noted that while the South Australian government continued to implement rigorous measures across the mining and resources sector to reduce the risk of coronavirus spreading among the workforce, it is also important to provide financial assistance to those companies doing it tough during this time.

“The junior exploration sector is suffering disproportionately from the disruptive effects of the pandemic response, with many smaller companies already operating for some time in difficult financial markets finding it tough going in the current health emergency.

“During these difficult times, it is essential that government continues to work closely with the resources industry to keep them operating while maintaining a safe and healthy workplace for their people, to aid in the eventual recovery.

“The South Australian government will carry on supporting our most important industries, and to ensure that our resources industry continues to play a vital role in the growth and development of this state, now and for years to come."

The Association of Mining and Exploration Companies (Amec) has welcomed the six month deferral, with CEO Warren Pearce saying that the reality for mineral exploration was that without significant cost relief from the government, many small exploration companies would not survive Covid-19.

“We are extremely pleased that the South Australian government is on the front foot and answering our call to alleviate some immediate financial pressures for these companies.”

“The South Australian government has recognised the significant challenges facing our industry and responded.

“With recent announcements tightening border crossing into the State for exploration, and further restrictions anticipated, such cost relief measures are both fair and reasonable,” Pearce said.