Mineral and energy resource exploration

Mineral and energy resource exploration

Draft report

You were invited to examine the draft report and to make written submissions and to participate in public hearings.

Please note: This draft report is for research purposes only. For final outcomes of this inquiry refer to the inquiry report.

Download the report

  • Mineral and energy resource exploration in Australia is a small part of the economy, equivalent to 0.5 per cent of GDP in 2011-12. The sector's significance is in discovering commercially valuable resources that sustain the operations of mineral and energy extraction industries - which represented 9 per cent of GDP in 2011-12.
  • The number, size and quality of resource discoveries in Australia is declining, and the exploration sector is experiencing rising costs and lower productivity.
  • Government regulates resource exploration for three broad reasons:
    • the mineral and energy resources are owned by the Crown
    • exploration may impact on existing and future land uses such as agriculture, or damage sites of environmental and heritage significance
    • exploration may have effects beyond the area being explored, such as on the regional environment and community.
  • Many stakeholders are dissatisfied with the current regulatory arrangements:
    • some explorers claim that governments are discouraging exploration by increasing compliance costs, extending approval times and increasing regulatory uncertainty
    • some community groups claim that regulations are insufficient to protect environmental, heritage and community values and agricultural uses of the land, and that regulators are not being sufficiently diligent in protecting those values and land uses.
  • Regulatory processes that impose unnecessary burdens on resource explorers or inhibit exploration can be reformed by:
    • adopting tenement allocation and renewal procedures that ensure efficiently sized tenements
    • ensuring stronger and simpler coordination, transparency and accountability of exploration licence approval processes
    • making land access decisions that take into account the benefits to the wider community from exploration, and are appropriate to the level of risk posed by exploration as informed by sound evidence
    • addressing state and territory and Commonwealth environmental approvals processes that are duplicative and are not commensurate with the risk and significance of the environmental impacts of exploration
    • improving access to the existing knowledge of Indigenous heritage and accrediting state and territory government processes which meet Australian Government standards of Indigenous heritage protection.
  • Explorers highly regard the accessibility and provision of pre-competitive data by Australia's geological survey organisations.