AMEC fights to secure future of exploration funding

The Australian mineral exploration sector faces uncertainty as the final round of the Junior Mineral Exploration Incentive (JMEI) funding was allocated on June 4, 2024, with no confirmed replacement.

The Association of Mining and Exploration Companies (AMEC) is calling on the Federal Government to renew or replace the program as part of the FY2026 budget, warning that without continued support, the future of Australia’s critical minerals exploration pipeline could be at risk.

Since its introduction in 2017, the JMEI has proven to be a vital mechanism for spurring exploration investment. With $190 million distributed over eight years, it has been instrumental in driving new mineral discoveries and supporting junior exploration companies. The initiative allows investors to claim tax credits, encouraging further financial backing for early-stage exploration.

To illustrate the significance of the JMEI, AMEC commissioned an Economic Impact Assessment (EIA) by BDO. The assessment revealed that the JMEI had a substantial impact on capital raising and exploration activities, contributing to regional economic growth and job creation. This evidence forms the backbone of AMEC’s advocacy efforts to secure a program extension.

"Without continued support from the JMEI, the pipeline of exploration projects could shrink, jeopardising Australia’s ability to compete on the global stage," said Warren Pearce, AMEC’s Chief Executive Officer.

With the final round of JMEI funds now exhausted, AMEC has escalated its advocacy efforts, urging the government to include an extension in the FY2026 budget. "Exploration is a critical part of the mining lifecycle. Without it, we risk falling behind in the race for critical minerals essential to renewable technologies," Warren added.

Australia’s ambition to be a world leader in critical minerals supply depends on a strong exploration sector. Many of the minerals deemed essential for electric vehicles, renewable energy storage, and advanced electronics rely on early-stage exploration funded by initiatives like the JMEI.

"Critical minerals supply chains are only as strong as the exploration pipeline that feeds them," said Warren. "If Australia is serious about securing its position in global critical minerals markets, then supporting exploration through incentives like the JMEI is non-negotiable."

Industry stakeholders have echoed AMEC’s calls for action. Exploration companies argue that without the JMEI, access to essential funding streams will become significantly more difficult, delaying or derailing future projects. With the global demand for critical minerals skyrocketing, Australian companies are under pressure to stay competitive.

AMEC’s campaign to extend the JMEI is expected to ramp up in early 2025, with plans to engage with government stakeholders and build a coalition of support within the exploration sector. The JMEI’s importance to the broader economy and Australia’s renewable energy transition is central to AMEC’s advocacy messaging.