Grants to deliver practical assistance to explorers

Surat: Exploration in Queensland is set to benefit from the first round of grants of more than $3 million to explorers, Minister for Mines and Energy Geoff Wilson said today.

The Minister said the grants were part of three new initiatives in the $29 million Smart Mining – Future Prosperity Program.

“The grants will help kick start exploration in parts of the state that have yet to be explored and I encourage explorers to send in their proposals,” Mr Wilson said.

In the first round of proposals, $3 million will be available under the Collaborative Drilling Initiative, $200,000 under the Cluster Formation Initiative and $240,000 for the Industry Network Initiative.

Today’s call for submissions is supported by the release of guidelines that outline eligibility and assessment criteria, and standard deeds of contract which allow industry to confidently prepare proposals for funding.

Mr Wilson said the Collaborative Drilling Initiative would bring government and industry together to fast-track drill testing of geological targets in under-explored parts of Queensland.

The closing date for Collaborative Drilling proposals is Friday 25 May 2007.

“The testing of targets in under-explored areas will provide new information on the state’s mineral and energy potential,” he said.

Mr Wilson said in line with the upward trend in coal exploration expenditure over the past five years, exploration and mining companies were continuing to explore for coal in Queensland.

In 2005–06, coal exploration expenditure on both production and exploration tenements in Queensland was $94 million, compared with $88.1 million in 2004–05.

“Expenditure has continued an upwards trend since the low in 2000. This trend is also evident in the SuratBasin area where exploration is continuing at a strong rate,” he said.

Mr Wilson said the Cluster Formation Initiative would support explorers working together to make better use of the available drilling and geophysical resources in the state.

Submissions for the Cluster Formation Initiative close on Friday 17 August 2007.

“The Industry Network Initiative directly supports junior mineral exploration companies. It will lend technical assistance so that they can develop and refine their exploration models,” Mr Wilson said.

“The funding connects junior explorers to industry think-tanks and other specialist services to jointly develop concepts and new techniques to help identify drill targets and new prospects,” he said.

The closing date for Industry Network submissions is Friday 28 September 2007.

Under the three initiatives, companies can apply for grants to recover up to half the actual costs, with the following limits per proposal:

* $150,000 for collaborative drilling

* $50,000 for cluster formation; and

* $40,000 for industry networking

Mr Wilson said the State Government recognised the significant contribution the mining and petroleum industry made to the Queensland way of life, with the industry producing resources valued at more than $25 billion in 2005–06.

“New exploration is vital to ensure the continued growth of the mining industry in Queensland the flow-on benefits to the people who live and work here.

“Today’s exploration will yield tomorrow’s job,” Mr Wilson said.

For the guidelines, contact the Department of Mines and Energy website www.dme.qld.gov.au or via email to minerals@dme.qld.gov.au

Media Inquiries: Ellen McIntyre 3225 1819