The State provides a secure place for resources sector investment through its supportive government, strong economy, mature financial and support sectors, and skilled workforce.
In WA, key State, Federal and Local Government Agencies play a part in regulating and influencing the resources industry. All three levels of government are well connected to each other.
For potential investors, this means having secure mineral or petroleum title to the resources they discover and develop, and being able to predict what conditions will need to be met to develop each stage of their project.
The stable and predictable regulatory system, which is based on the rule of law, ensures that policy settings can promote economic activity while still protecting environmental, cultural and community values.
The Department of Mines and Petroleum’s (DMP) is responsible for administering legislation relating to mining and petroleum activities across the State and also collects minera and petroleum royalties.
Although there are no prescribed programs for financial assistance to WA’s minerals and petroleum industry, the State does have the prerogative to offer financial assistance to specific areas of the resource and energy sector. Examples of current assistance programs available are: Iron ore Financial Assistance and Royalty Relief.
These programs are dependent on factors such as international commodity market values and WA industry needs, so they tend to be limited in availability.
The State also provides financial incentives for greenfields exploration in petroleum and minerals in WA under the Exploration Incentive Scheme (EIS). Since its commencement in 2009, the program has co-funded over 300 completed projects — contributing to many new discoveries for the State. Updates and information on EIS is available online through GSWA.
The Australian Government has introduced an Exploration Development Incentive (EDI) to encourage investment in small ASX-listed exploration companies undertaking greenfields mineral exploration throughout Australia, which can also assist WA exploration companies. Details of EDI are available online through the Australian Taxation Office.
With the recent introduction of Free Trade Agreements between Australia and a number of countries (e.g. USA, Singapore, Malaysia, Chile) including more recently China, Japan and South Korea, private sector investors do not need prior approval for investments up to $AUD1.1 billion. For further information of Free Trade Agreements is available from the Department of Foreign Affairs and Trade (DFAT).