Call for COVID-19 relief for Queensland’s explorers

Queensland explorers are being overlooked in efforts to support industry in the COVID-19 crisis, threatening the state’s mining project pipeline, a peak body warns. Association of Mining and Exploration Companies (AMEC) Queensland manager Kate Dickson said explorers operating in Queensland were not seeing the sort of blanket mineral industry assistance measures being implemented in some other states and remained ineligible for JobKeeper funds. “The national resources ministers have acknowledged that exploration is important and should be encouraged to continue to operate. I think some jurisdictions are doing that better than others,” she said. AMEC Queensland manager Kate Dickson. Small companies were trying to conserve cash at a time when capital raising potential was poor, she said. “While that cash is going into things like government fees and rents, some of these explorers are going to go under because they won’t be able to pay,” Ms Dickson said. “One of my member companies pointed out to me that the Federal and State government want commercial and residential landlords to give people a discount on rent, but the Queensland Government isn’t handing out rental discounts for exploration land.” Variations confined to 'case by case' basis It would be simple to provide a blanket discount or deferral on tenure rent, or relax the spending levels and work programs explorers were committed to achieve as condition of their lease, she said. (Western Australia, South Australia and New South Wales are making various concessions along these lines). “At the moment, the Queensland Government wants all explorers to contact them and apply for variations on the conditions of their tenure on a case by case basis,” Ms Dickson said. “They think it’s simple using existing systems, but it could be simpler.” Many companies relied on paid tenure consultants to handle such matters – meaning this process may require another outlay of cash or an application to change the identity of the authorised holder able to make the request, she said. “DNRME (the Department of Natural Resources, Mines and Energy) really are trying to keep mining companies operating,” Ms Dickson said. “I think that has been their focus - to make sure that people can still get to site and that mines can keep operating. “But at some point they are going to need to turn their minds to the future and help keep these explorers alive so that the industry can keep going - otherwise the project pipeline is going to dry up and in two or three years’ time they won’t have the royalties that they need to rebuild the Queensland economy.” Minister open to 'reasonable measures' to assist Queensland Mines Minister Anthony Lynham said the state’s resources sector and its workforce would be critical to the ongoing recovery as Queensland and the world emerged from the COVID-19 pandemic. “I will be taking into consideration any reasonable and practical measures to assist Queensland explorers during this difficult time,” he said. Dr Lynham highlighted the range of measures the State Government was funding to protect jobs and businesses across the board, including $1 billion for the Industry Support Package, $950 million payroll tax relief, $500 million worker retraining and assistance, $500 million COVID-19 jobs support loans,$100 million electricity bill relief for small and medium businesses. Battle continues for JobKeeper eligibility On the Federal level AMEC is continuing to lobby for changes that would allow mineral exploration companies to gain financial assistance under the JobKeeper initiative. The present eligibility criteria require businesses to have turnover, which leaves the resource sector’s explorers out in the cold. AMEC warns that 500 - 600 jobs are now at serious risk nationwide among those exploration-focused companies listed on the ASX, while as many as 100 more may be at risk in private companies. Ms Dickson said border restrictions were limiting Queensland field work for companies with personnel based interstate and that some explorers were reluctant to go into regional areas for fear of being perceived as the source of any COVID-19 outbreak. Others were continuing to explore while avoiding contact with local communities, she said. https://www.i-q.net.au/main/explorers-anticipate-major-spending-cuts https://www.i-q.net.au/main/plea-to-stop-exploration-jobs-falling-through-the-gap

Call for COVID-19 relief for Queensland’s explorers

Industry Queensland

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