Queensland Plans Relief Package for Exploration Sector

The Queensland government May 6 announced it plans to provide a range of relief measures for exploration companies in response to the uncertainties created by the coronavirus (Covid-19) pandemic.

The assistance measures being considered include a rent waiver for holders of an exploration permit or authority to prospect whose rent is payable within April 1 to September 30, 2020, the removal of application fee for special variations of authority to prospect work programmes, capping of all other fees and charges under the resource Acts at 2019–20 rates, and recognition that Covid-19 is an exceptional event that may require explorers to vary work programmes and/or relinquishment conditions.

The government is also fast-tracking a number of industry development initiatives, including continuing to release land for exploration under the 2020 Queensland exploration programme, with the release of both coal and petroleum tender in May. In March, the state government had placed the tender releases that were scheduled under the 2020 exploration programme on hold.

The government said it is bringing forward A$2.8mn in Collaborative Exploration Initiative funding to the 2020–21 financial year. Under the plan the government will encourage exploration, particularly in frontier areas, support innovative exploration techniques, including machine learning, and promote the discovery and development of 'new economy' minerals. As per the government, new economy minerals include a range of metals and mineral elements in high demand for use in renewable energy and advanced technological applications.

The upstream lobby group Australian Petroleum Production & Exploration Association (Appea) said the measures announced will provide for relief and flexibility to support explorers and encourage innovative exploration activities through a direct grant process.

Appea CEO Andrew McConville said this package would particularly help smaller exploration companies that continue to play a critical role in the identification and development of new energy resources.

“Successful exploration can deliver revenue for governments, jobs for workers and long-term energy security for Australia,” McConville said. “Current economic conditions have the potential to irreparably damage oil and gas exploration in Australia unless steps are taken to provide short term relief to allow companies to remain in business until the economy has moved through the worst of the downturn.”