New Call for Flow Through Shares
Both the Government and Opposition have been called on to explain how they will address the market failure affecting the ability of junior companies to fund exploration in Australia.
In a letter to Resources Minister, Martin Fergusson, AIG President Martin Robinson expressed AIG's deep concerns about the ramifications for exploration activity in Australia of your Government?s proposed changes to Australian taxation law as it impacts the broader resources sector.
"The ALP went to the 2007 Federal election promising to introduce in the current term, a Flow Through Share (FTS) scheme but through the Henry Review and machinations of the resource tax proposals since, has failed to do so, leaving ongoing and unresolved, the problems above" Martin Robinson said.
"Your resources tax decisions neglect the entire upstream, discovery side of the exploration equation whilst obtaining greater returns from the downstream, extraction side."
"Most of Australia?s recent minerals boom in iron ore, alumina, nickel and base metals has been built on discoveries made decades ago, but these major deposits are now largely „mature? and in decline - a clear threat to long-term mine production and hence national export earnings."
"Only a sustainable level of resource exploration can deliver Australia long-term new mines."
AIG's call coincides with similar calls to government by the Association of Mining and Exploration Companies (AMEC).
Click here for a copy of the letter (pdf).
AIG urges members to send a copy of the letter to their local candidates in the upcoming election, asking how their party will ensure that exploration investment is sustainable in Australia.
AIG's bursary programme for undergraduate and postgraduate students is generously supported by sponsors including:
Digirock Pty Ltd
Sydney Mineral Exploration Discussion Group (SMEDG)
AIG State Branches
Gnomic Exploration Services Pty Ltd
Office of Minerals & Energy PIRSA
Terra Search Pty Ltd
Cryptodome Pty Ltd
