Exploration Incentive Scheme—2025–26 state budget
263. Mrs Ali Kentto theMinister for Mines and Petroleum:
I refer to the Cook Labor government's priority of ensuring Western Australia remains a global resources leader.
(1) Can the minister update the house on how this budget supports the exploration sector of the resources industry?
(2) Can the minister explain to the house how this support benefits the broader state economy?
Mr David Michael replied:
(1)–(2) I thank the member for Kalgoorlie for that question. It was great to be in Kalgoorlie last week. We had a budget breakfast and then spent a whole day talking to the local community and those in the resources sector about the great work that continues to be done in Kalgoorlie, second only to the Pilbara in terms of the contribution to our state, including jobs, royalties, taxes and output. It is amazing. I congratulate the member for her amazing efforts in investment in Kalgoorlie in the budget. It was only in February when we stood in front of the WA School of Mines to announce an election commitment from WA Labor to expand funding for the very successful Exploration Incentive Scheme (EIS). I am really proud that that funding has come to fruition in this budget. I am sure all members know that in this resources state, exploration is a lifeblood of the industry. We have to explore to make sure we have the mines of the future. The election commitment to increase funding support for the EIS to $18 million a year has been well received by the resources sector.
It is no secret that exploration is high risk, high reward. This government is standing by the sector to deliver the next generation of mines. Some of those critical mineral mines also help our state and the globe decarbonise and provide the jobs that are the backbone of our state and national economies.
Since 2017, that EIS has helped discover and define mineralisation across the whole state—examples being International Graphite near Hopetoun; Hastings Technology Metals' Yangibana rare-earths project north-east of Carnarvon; Australian Vanadium's project in the Mid West; and De Grey Mining's gold project in the Pilbara, which was recently taken over by one of the state's biggest gold producers, Northern Star Resources.
The member for Kalgoorlie would be pleased to know that Lunnon Metals received EIS funding for its Defiance West target as part of the Kambalda gold and nickel project in March this year. Other notable EIS-backed projects across the Goldfields–Esperance region include funding for Ardea Resources' Highway nickel project and Saturn Metals' Apollo Hill gold project. Increased funding for the EIS has also allowed the government to beef up the co-funded geophysics program. I am happy to report that the inaugural venture in 2024–25 has delivered successes for two companies in the state's North West. Sipa Resources and Stavely Minerals both conducted ground-based geophysical surveys and found targets to be potentially prospective for lead zinc in the north-east Canning Basin and copper nickel in the south-west Kimberley respectively. Co-funded EIS drilling support has also been afforded to both companies to conduct drilling campaigns this financial year, affording the potential opportunity for an accelerated mechanism to discovery.
Further, courtesy of more funding from the EIS, a TESCAN integrated mineral analyser (TIMA) will be purchased to deliver high-speed detailed measurements from sample batches unique to mineral processing. Data collected from the use of TIMA can be used for characterising potential carbon capture and storage-depleted reservoirs that the state can integrate into our CO2 Storage Atlas of WA.
We are very much looking forward to seeing the future rounds of the EIS program with that increased funding and to see successful applicants continue forward in the mines of the future. I am also looking forward to seeing on 1 July the new Department of Mines, Petroleum and Exploration, known as DMPE, commence, with a focus on supporting and regulating our resources industry.
