Cuts to CSIRO's mineral exploration research defy government priorities

Furthermore, the costs involved in submitting these applications impact more heavily on Australian junior explorers because they are unlikely to have the cash flows of the established multinationals, which are needed to see the application processes through to a conclusion. The report recommends four actions to simplify the processes without diminishing the Indigenous rights or heritage values.

Access to capital is also crucial for a vibrant exploration industry. At present there is considerable competition to attract venture capital, not only from other investment opportunities in Australia but also from other countries such as Canada, where the taxation regime is much more attractive than it is here. The SLG has made three recommendations, which, if implemented would make Australia a much more attractive place to undertake resource exploration.

Finally, Geoscience information provided by the Commonwealth, State and Territory Geological Surveys has proved to be one of Australia's greatest assets in encouraging exploration. We probably have the most complete set of geoscientific information of all the continents. Digital gravity, magnetic, radiometric, elevation and geological data sets are available on a continent-wide basis at various resolutions and these are used by likely explorers to assess whether or not to invest in Australia. The SLG report recommends an increased public investment in geoscience information to maintain our lead in this critical area.

All these matters need to be dealt with by government, but right now as a start, CSIRO should restore the research funding to the Exploration and Mining area. Without a research capability our industries will not be innovative and their wealth generation capacity will decline.