Macfarlane said the government would back several of the recommendations in the Productivity Commission’s Mineral and Energy Resource Exploration inquiry report, including the development of a one-stop shop for environmental assessments and approvals.

Recommendations in the report included implementing a tax credit for mineral exploration, increasing efficiency and reducing duplications, increasing transparency and accountability, reducing the regulatory approval timelines and dismissing cash bidding for resources.

“Exploration itself is a fraction of Australian economic activity but it fuels the resources and energy industry, which accounts for around 10% of our economy,” Macfarlane said.

“That’s why the government is implementing an exploration development incentive, which will support small and mid-sized mining companies to attract exploration investment.

“The government is also continuing it deregulation agenda, to rid industry of unnecessary green and red tape.

“Australia cannot afford to let unnecessary regulatory burdens, complex and lengthy government approvals and duplication between jurisdictions reduce our global share of exploration activity and hinder future resource development.”

Macfarlane pointed to a recent report by the Bureau of Resources and Energy, citing the need to remove barriers to investment as the industry shifted to a phase of more sustained production.

“Investment remains key to long-term growth and the government is working with the industry to put in place policies to support the resources sector, sustain existing investment and ensure Australia is internationally competitive and well positioned to attract the next wave of investment,” he said.

“The government is pushing ahead with the abolition of Minerals Resource Rent Tax and the carbon tax and is streamlining the approvals process for new projects.”

The Association of Mining Exploration Companies, which offered many of the Productivity Commission’s recommendations, was supportive of the comments.

“The government’s commitment to implementing an exploration development incentive will go a long way towards addressing low discovery rates of new mines,” AMEC chief executive Simon Bennison said.

“Along with the repeal of the carbon tax and the MRRT, the EDI will help Australia to regain some of its international competitiveness and increase its share of global exploration expenditure.

“This is essential to discover the mines of tomorrow, develop new projects, create jobs and government revenue streams for the benefit of all Australians.”

Bennison added that AMEC would continue to press for the reversal of water trigger amendments to the Environmental Protection and Biodiversity Act, as well as for support of the group’s recommendations to improve clarity on cultural heritage protection issues.