Exploration Development Initiative another step towards Australia’s exploration recovery

 The Minerals Council of Australia welcomes the passage of legislation to implement an Exploration Development Tax Incentive (EDI) for investment in small mineral exploration companies undertaking greenfields mineral exploration. 

The EDI is timely with the value of mining exploration falling by more than 40 per cent over the past four years and Australia’s attractiveness as a destination for mining investment declining.

The passage of the legislation is an important achievement for Industry Minister, Ian Macfarlane who has consistently championed the case for removing structural obstacles to minerals exploration.

The minerals industry also commends the bipartisan support for the legislation provided by the Labor Party, led by Shadow Resources Minister, Gary Gray.

The passage of the EDI sends a strong signal to investors that the Australian government backs the mineral exploration sector for the long-term and will go some way to addressing Australia’s fall in investment attractiveness as reported by the Fraser Institute Survey recently.

The EDI should provide an additional boost to Australian junior exploration firms at a time when other countries have acknowledged the challenges of continuing exploration. 

Earlier this week, the Canadian government extended the exploration tax credits offered to its miners for another year and has broadened the scope of the credits in an effort to boost mining exploration activity. 

Download complete article