The Association of Mining and Exploration Companies (AMEC) has called on the Australian government to extend and expand the Junior Minerals Exploration Incentive (JMEI), citing its substantial economic benefits since its inception in 2017.

“The JMEI is doing exactly what it set out to do,” AMEC CEO Warren Pearce said this week.

This follows an AMEC-commissioned report from BDO, which revealed that the A$182.2-million in JMEI tax credits allocated between 2017 and 2024 delivered a net-positive impact of A$769-million to Australia’s gross domestic product.

“Every dollar allocated results in more than A$2 spent on exploration activity and more than A$6 is raised on capital markets by companies,” Pearce pointed out.

The BDO report also noted that JMEI facilitated A$1.2-billion in capital raising, A$404-million in exploration expenditure, A$391-million in government revenue, and an expected A$5.9-billion in future mineral production.

BDO economics partner Anders Magnusson emphasised the programme’s untapped potential.

“The positive historical effects of the JMEI reported here are indicative of the type of effects that can be expected in the future if the programme is extended, and further positive effects can be expected from expanding the programme.

“By increasing the total amount of credits available and allowing them to be used over a longer period,more businesses could benefit from the programme,” said Magnusson.

AMEC has called for the government to extend the JMEI for another four years and to increase funding to A$200-million.

“We need to replenish end-of-life mines with new greenfield exploration discoveries.

“This is a critical investment in Australia’s future and supports mineral exploration - a long-term, high-risk activity.

“And by doubling the investment, you’re doubling the benefits,” added Pearce.

Described as “the lifeblood of Australia’s mining industry”, he said greenfields exploration plays a crucial role in uncovering the mines of the future.

“Each discovery that leads to a mine creates new jobs, royalties and government revenues.”