Juniors see Australia’s new tax incentive as a lifesaver
The Australian Institute of Geoscientists said Wednesday the Federal Government’s announced tax breaks for junior miners could be the lifesaver the sector has been waiting for.
According to ABC News, 19% of geoscientists are currently unemployed, compared with fewer than 2% three years ago.
And while the group acknowledges that mining employment is cyclical, it said it hopes the Exploration Development Incentive will help to improve job prospects for its mining industry members.
In recent months, several junior miners that had been hanging by their fingernails have gone out of business. This hasn’t surprised experts, especially Sprott Global Resource Investments chairman Rick Rule, who last year made a few waves by saying that most of the 800 junior miners listed on the ASX were worthless.
But market conditions are improving and exploration firms should soon begin to see the light at the end of the tunnel. Quoting Mining Speculator publisher Greg McCoach’s words: “when the market does recover, it is going to be a screamer.”
Image from the State Library of New South Wales, Australia