The Western Australian government has offered relief for the state’s explorer and miners to abate higher fuel costs.
Under a new policy, companies hit by fuel security issues can now apply for exemptions to their mandatory minimum expenditure requirements.
This move is designed to provide a financial buffer for companies operating in remote regions where diesel costs have become a significant barrier to active work.
Minimum expenditure requirements are traditionally the backbone of WA’s mining law, designed to prevent land banking, where companies hold onto land without developing it.
However, Mines and Petroleum Minister David Michael noted that the current economic climate requires a more flexible approach.
“I’m acutely aware that the high cost of fuel and in some cases supply issues are creating significant challenges for our exploration and mining sector,” Michael said.
“We’re committed to easing the cost burden on our mining sector at a time of high fuel prices and uncertainty around supply.”
The exemptions will not be universal but will be granted on a case-by-case basis. Companies will need to demonstrate that strict compliance with their spending obligations is impractical due to prevailing fuel security issues or would be contrary to the state’s broader economic interests.
This policy is the latest in a string of measures from the state government, including the establishment of a 12 million-litre diesel stockpile, aimed at insulating the WA economy from international supply chain disruptions.
The government has confirmed that this new expenditure policy will remain in place until at least the end of 2026, at which point it will be reviewed against the global fuel landscape.
