DMP Director General Richard Sellers returned last week from a two city tour of China to promote investment opportunities in Western Australia’s resources sector.
|Date:||Monday, 26 October 2015|
Department of Mines and Petroleum (DMP) Director General Richard Sellers returned last week from a two city tour to China to promote investment opportunities in Western Australia’s resources sector.
As a keynote speaker at the Minerals Investment Seminar in Beijing Mr Sellers promoted gold prospectivity in the State, citing eight new discoveries in 2014-15.
“There is plenty of potential for gold exploration and Western Australia accounts for more than half of the 1,520 gold exploration and mining projects in Australia, including gold by-products,” Mr Sellers said.
He told investors in the Chinese capital that the downturn in equity markets provided an opportunity for new investment.
“The current economic environment provides for major cost cutting with less competition for labour, lower wages, and less competition for service companies leading to lower operating and capital costs, along with keen sellers,” the Director General said.
“While times are tough this provides investment opportunities and most Western Australian deposits are mined at the lower end of the gold cost curve.”
Mr Sellers also addressed investors at the China Mining Congress and Expo 2015 in Tianjin telling those in attendance that there had never been a better time to invest in Western Australia.
“There are many licence holders looking for joint venture partners, with many companies wanting equity which are providing opportunities at all development stages, including off-take agreements,” he said.
Mr Sellers reminded investors that WA was among the top-rated jurisdictions for investment attractiveness in 2014 and was ranked fifth in the world for the quality of its geoscience databases, under the Fraser Institute’s world rankings.
“In fact there were 33 new mineral discoveries made in WA in the last year, largely gold, copper, nickel and heavy mineral sands,” he said.
Mr Sellers said it was important to promote investment opportunities overseas and said that China was already a big investor in the State’s resources industry, including the uranium exploration sector.
There are currently more than 120 significant mining and exploration projects in WA with Chinese investment, with a mixture of corporate equity and joint ventures.
“The majority of mining investments have been successful, and the clear message to the Chinese is that now is an excellent time to invest, especially in light of the removal of the Mineral Resources Rent Tax and Carbon Tax, the introduction of the Commonwealth Exploration Development Initiative, the continuation of the Exploration Incentive Scheme (EIS), and deferring of changes to royalty rates.”
The Director General’s latest investment drive follows a 10-day trade mission to Singapore, South Korea and China in May with Mines and Petroleum Minister Bill Marmion.
Opportunities for investment with downturn in equity markets