Applications are now open for Round 26 of Western Australia’s co-funded drilling program, the Exploration Incentive Scheme (EIS), and Series 4 of the Energy Analysis Program (EAP).
The EIS encourages innovative exploration in greenfields and under-explored areas of Western Australia, while the EAP promotes the reanalysis of existing data to better understand the state’s energy systems.
The Western Australian Government has increased the capped values for EIS drilling refunds in February 2022, with explorers now receiving a refund of up to $180,000 for a multi-hole project, $220,000 for one or two deep holes, and $40,000 for prospectors.
The co-funded EAP offers refunds of up to $50,000 per application.
The Association of Mining and Exploration Companies’ (AMEC) Chief Executive Officer , Warren Pearce, has urged mineral exploration companies to get their applications in early.
“The competitive Exploration Incentive Scheme (EIS) program is a significant Government investment into mineral exploration drilling, offering up to a 50 per cent refund for eligible projects,” Mr Pearce said.
“Greenfield mineral exploration drives the success of Western Australia’s mining industry, it is these discoveries that deliver long-lasting jobs and benefits to our community.”
Recent successes include Strike Energy’s gas discovery at its South Erregulla One well in February 2022. The drilling program extended the known gas field in the North Perth basin.
Tempest Minerals targeted drill program intersected visible copper and semi-massive sulphides. The multiple mineralisation zones are directly comparable to the nearby Golden Grove mine – one of the state’s most successful high-grade copper, zinc and precious metals mining operations.
“On the back of promising discoveries, such as AMEC member Tempest Minerals’ high grade copper discovery, interest in Western Australia’s abundant mineral prospects remains strong, reflected in the continued popularity and availability of programs like the EIS,” Mr Pearce said.
“It helps exploration companies leverage matching private funding to undertake innovative greenfield exploration drilling, with capped values for drilling increased this round as Government acknowledges the increase in costs associated with exploration, in particular the labour and skills shortages impacting the industry.”
“This initiative provides investors with an element of confidence needed to invest. As Western Australia faces some difficulties including labour costs and skills shortages, providing this added support to the exploration industry will help to find new discoveries and add more projects to the pipeline.”
Western Australian Mines and Petroleum Minister, Bill Johnston, said these programs play an important role in mitigating the risks associated with exploration drilling in WA.
“Mineral exploration is the core of our resources sector, and the McGowan Government will continue to help companies mitigate the costs and risks associated with exploration drilling,” Mr Johnston said.
“Since 2017, we have provided nearly $80 million in funding for innovative programs and strategies designed to attract exploration investment.
“Mineral exploration expenditure in Western Australia reached a record $2.4 billion in 2021, an increase of 34 per cent on 2020.
“With WA accounting for 65 per cent of the nation’s mineral exploration expenditure, I’m sure the strength of our mining sector will be showcased at the Diggers and Dealers Mining Forum – which opens today in Kalgoorlie.”
Applications for Round 26 and Series 4 close at 4pm on Friday, 26 August 2022. For more information, visit https://dmp.wa.gov.au/Geological-Survey/Exploration-Incentive-Scheme-1428.aspx
