Despite being a major money generator for the national economy, Australia’s mining industry is being left behind in the Federal Government’s $42 billion stimulus package, Australasian Institute of Mining and Metallurgy CEO Michael Catchpole said.
“The stimulus measures announced to date have completely neglected the one sector, mining, that has the greatest potential to generate huge revenues over a longer economic cycle and put the Federal Budget back in the black,” he said.
According to Catchpole, mining provides up to almost 11% of the nation’s GDP, or $119 billion.
He said an agreement between the mining industry and the Federal Government in the lead up to the 2007 election on a flow-through share scheme to support increased exploration activity needs to be implemented for continued growth.
“If we are to continue to rely on the huge earning capacity of resources, and not be mired in deficit for years to come, we must guarantee our prosperity by discovering new ore bodies for future development,” he said.
“Far more than any economic stimulus package aimed at family shoppers, the very real stimulus of a flow-through share scheme will ensure that exploration capital, the lifeblood of the minerals industry, keeps flowing.”