Victoria’s minerals industry has issued a call to action to the Victorian Government to seize the opportunities in mining of minerals.
MCA Victoria’s 2022 pre-budget submission sets out policies urgently required to ensure the opportunity in a vibrant sector are not wasted.
Victoria needs new investment in regional industries to generate jobs and government revenues.
Victoria’s resources in gold, mineral sands, rare earths, base metals and potentially tech metals such as lithium offer Victoria the opportunity to build a more diverse economy as the state recovers from the pandemic.
Exploration and mining employs thousands of regional Victorians on high wages and supports regional business through local procurement.
Gold, base metal and mineral sands explorers invested a record high $220 million in exploration in 2021.
A growing minerals sector means a growing advanced manufacturing sector as Victorian mines buy local and support Victoria’s METS sector which exports high tech safety, engineering, mining processing and services around the world.
With this opportunity, the minerals sector should be considered a priority industry by government.
Mining and exploration is a global industry. Victoria needs to give investors the confidence that record spending on exploration can lead to new mines with the support of the community, and subject to stringent environmental and regulatory standards.
The reintroduction of a co-funded minerals exploration initiative targeted at new economy minerals, more coordinated and efficient approvals through strategic project facilitation and improved resourcing of Earth Resources Regulator (ERR) for more efficient approvals and regulation will help ensure Victoria can seize the opportunities.
Victoria’s exploration license framework needs reform. The compulsory relinquishment requirements and short licence periods do reflect Victoria’s geological characteristics and approvals process timeframes.
In the medium term, reform to Victoria’s flawed gold royalty which was imposed in 2020 with no consultation will be required to ensure that the uncompetitive royalty does not result in mines closing in times of lower gold prices. MCA Victoria does not oppose a royalty, but it needs reform to be fit for purpose without risking jobs and future investment in mining.
Victorians need the mineral inputs to iPhones, wind turbines, electric vehicles and modern medicine. Victoria’s minerals will produce the technologies we use every day and add to the state’s economic strength.
