The Australian federal government last week announced that it would work with state and territory governments to implement recommendations by the Productivity Commission Inquiry to ensure that Australia’s mineral exploration sector was globally competitive and economically attractive.

The 12-month inquiry recognised that the number, size and quality of resource discoveries in Australia were declining, while the exploration sector was experiencing higher costs and lower productivity.

The commission made 22 recommendations to increase the efficiency and effectiveness of exploration approvals and processes and reduce costs associated with government processes and regulatory duplication.

The final report recommended that regulatory processes governing the exploration sector be reformed by ensuring stronger and simpler coordination, making land access decisions that took into account the benefits of exploration to the wider community, improving access to existing knowledge of indigenous heritage, accrediting state and territory government processes that met Australian government standards, and addressing state, territory and commonwealth environmental approvals processes that were duplicative and were not commensurate with the risk and significance of the environmental impacts of exploration.

The report also recommended that state and territory governments ensure explorers compensate landholders for reasonable legal and other costs incurred in negotiating a land access agreement, including when an explorer withdrew from negotiations before finalising an agreement.

Federal Minister for Industry Ian Macfarlane said that while exploration itself was a fraction of Australia’s economic activity, it fuelled the resources and energy industry, which accounted for around 10% of the economy.

“That’s why the government is implementing an Exploration Development Incentive, which will support small and midsized mining companies to attract exploration investment. The government is also continuing its deregulation agenda to rid industry of unnecessary green and red tape.”

Macfarlane noted that Australia could not afford to let unnecessary regulatory burdens, complex and lengthy government approvals and duplication between jurisdictions reduce its global share of exploration activity and hinder future resource development.

“The government is already implementing several recommendations from the ‘Productivity Commission’ report, including our election commitment to develop a ‘one-stop shop’ for environmental assessments and approvals, which all Australian states and territories are working to finalise by the end of 2014.”

The Association of Mining and Exploration Companies (Amec) has welcomed the government’s commitment to implement the recommendations, with CEO Simon Bennison saying that the report recognised many of the concerns that Amec had identified in its various submissions and presentations to the commission over the past 18 months.

“Amec’s recommendations included implementing a tax credit for mineral exploration, increasing efficiency and reducing duplications, increasing transparency and accountability, reducing the regulatory approval timelines and dismissing cash bidding for resources.

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