The Association of Mining and Exploration Companies (Amec) has lamented the recent decline in investment in Australia’s resources sector, with CEO Simon Bennison saying that some 65% of capital raised in 2013 had been spent overseas.

Addressing delegates at the Amec Convention, in Perth, Bennison noted that spiraling production costs, frustration with land access issues and the cost and delays associated with approvals processes had contributed to the decision of many Australian companies to head offshore rather than develop local projects.

“With the exception of one or two commodities, producers and explorers are enduring one of the most difficult financial periods on record,” he added.

Bennison’s remarks followed shortly after the Australian Bureau of Statistics (ABS) reported a 7.8%, or A$57.5-mil-lion, decline in mineral exploration expenditure during the June quarter.

The seasonally adjusted esti- mate for mineral exploration expenditure declined by 10.6%, or A$163.1-million, during the quarter, with Western Australia being the hardest hit.

Bennison called on both the federal and state governments to reconsider the introduction of new taxes or royalties that could further impact on the resources industry.

“The mining and exploration sector cannot tolerate ill-considered, short-sighted ad hoc policy changes that it has been subjected to previously. “This applies across all govern- ments where we are seeing changes in various policies that are creating an administrative headache for smaller operators. “We have certainly seen this in the administration of the minerals resource rent tax,” Bennison said.

Amec has further cautioned all government agencies not to be tempted to impose agency operating costs on the industry.

“The billions of dollars already paid by industry in the form of taxes and royalties are a clear return to the community. “Governments should support development by innovative policies that do not result in financial and administrative imposts on industry and government.”

Bennison pointed out that Amec was optimistic about the future of mining in Australia, but said that it would require a serious effort from industry and governments to drive the necessary policy changes that will reduce costs and timelines and improve access to capital.