The Federal Government has released its interim response to the Productivity Commission Inquiry Report into Mineral and Energy Resource Exploration, addressing the 22 recommendations made by the commission in March of this year.
The key recommendations focused on increasing the efficiency and effectiveness of exploration approvals and processes and reducing costs associated with Government processes and regulatory duplication.
Industry Minister Ian Macfarlane said the Government would work with the States and Northern Territory on implementing the report’s recommendations.
“Exploration itself is a fraction of Australian economic activity but it fuels the resources and energy industry, which accounts for around 10 per cent of our economy,” Mr Macfarlane said.
“That’s why the Government is implementing an Exploration Development Incentive which will support small and mid-sized mining companies to attract exploration investment. The Government is also continuing it deregulation agenda, to rid industry of unnecessary green and red tape.
“Australia cannot afford to let unnecessary regulatory burdens, complex and lengthy Government approvals and duplication between jurisdictions reduce our global share of exploration activity and hinder future resource development.
“The Government is already implementing several recommendations from the Productivity Commission Report, including our election commitment to develop a ‘one-stop shop’ for environmental assessments and approvals, which all Australian states and territories are working to finalise by the end of 2014.
“Australia is open for business – it is time our regulations reflected this.”
The report recommends that State and Territory Governments ensure explorers compensate land holders for reasonable legal and other costs incurred in negotiating a land access agreement, including when an explorer withdraws from negotiations before finalising an agreement.
It also recommends Governments ensure that when uncertainty surrounds the environmental impacts of exploration, environmental approval decisions should be evidence based and regulatory settings should evolve with the best available knowledge.
“The Government has always believed that the mining industry can work in co-operation with local communities, to ensure the value and returns from our resources sector are shared to the benefit of our economy,” Mr Macfarlane said.
The interim response will enable discussions with the States and the Northern Territory to begin, with a final response to be tabled within 24 months. The complete interim response is available at http://www.industry.gov.au/PCInquiry.
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