The Road to Discovery: the Minerals Exploration Action Agenda (MEAA)
[PDF, 240KB] was launched on 2 July 2004, with a vision to "...develop a sustainable minerals exploration industry that would be internationally competitive, efficient and environmentally and socially responsible".
At the same time, a representative group of industry and government leaders (MEAA Implementation Group (IG)) was established to implement this vision across four key delivery strategies. This report documents the activities of the MEAA since it moved into the implementation phase and summarises conclusions and recommendations to government and the minerals industry.
Access to land
During this period industry and governments have worked cooperatively in removing impediments to land access while retaining the important Indigenous, environmental and social protection afforded by current legislation.
Access to Finance
The group has addressed a range of finance issues to improve the ability of Australian explorers to raise risk capital for exploration. These included the recognition of the key role which the introduction of a Flow-Through Shares (FTS) scheme would play in stimulating greenfields exploration. It also included the re-establishment of a resources index on the Australian Stock Exchange.
Access to Pre-competitive Geoscience Data
Members successfully advocated for increased geoscience funding with increases in most states. On 14 August 2006, the Australian Government provided $58.9 million to enable Geoscience Australia to pioneer innovative, integrated geoscientific onshore pre-competitive geoscience research.
Access to Human and Intellectual Capital
The MEAA also recognised the importance of maintaining access to high quality human and intellectual capital for the future success of the mineral exploration sector and the wider resources industry in Australia. Governments and industry have continued efforts to attract and retain skilled workers, and ensure that the education system is producing graduates with the skills required for modern exploration.
The state of the minerals industry has also improved dramatically since the MEAA was announced. In particular, prices for most mineral commodities are at or close to record levels, driven by strong demand from China. The mining industry is enjoying strong and even record profits, in contrast to conditions immediately preceding the implementation of the MEAA, when the mining industry struggled to earn the cost of capital. Australian mineral exploration expenditure has nearly doubled since 2002 and reached $1,240 million in 2005-06, the highest level since 1998. The environment for capital raising for mineral exploration, and the efficiency of accessing land has also improved significantly.
However, these improvements in the overall health of the minerals industry mask an issue which should be of serious concern for governments in Australia. Although there has been a significant improvement in the levels of total exploration, Australia's share of global exploration expenditure has declined from around 20 per cent in the 1990s to 11 per cent in 2005 (Metals Economics Group 2006). Compounding this reduced 'international competitiveness' of the Australian market is a trend to reduced expenditure on greenfields exploration which targets new discoveries. These trends have significant long-term implications for Australia's rate of discovery of key new mineral deposits if we are to sustain the national mineral inventory. The recommendation by the Implementation Group for the introduction of a Flow-Through Share scheme should be considered a critical policy option for Australian Government.
While much has been achieved through this action agenda, mining companies, governments and research agencies must continue to work together to "...achieve a sustainable minerals exploration industry that is internationally competitive, efficient and environmentally and socially responsible". The Implementation Group members acknowledge that the implementation of the MEAA has run its course but that key strategic issues still relevant to discovery in Australia must continue to be pursued. Members note that the Ministerial Council on Minerals and Petroleum Resources (MCMPR) has agreed to establish an industry/government group to advise on key strategic issues and look forward to continuing to support new Australian mineral discoveries through this process.
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