The EIS, introduced by the previous government, provides refunds of up to 50% for selected drilling projects.

The government said every $1 million it invested generated $10.3 million in exploration activities, creating 48 jobs over 18 years.

The commitment from the government comes after the Department of Mines, Industry Regulation and Safety received a 40% jump in exploration applications in the first half of 2017.

"Western Australia's mineral industry is in its best shape since 2012 – in the first half of 2017, there were 15 mineral initial public offerings on the ASX, four more than 2016,” Mines and Petroleum Minister Bill Johnston said.

"The surge of investor interest in gold and battery metals, lithium, graphite and cobalt, is helping Western Australia to emerge more rapidly from the equity funding doldrums."

The news was welcomed by industry groups, the Chamber of Minerals and Energy of WA and the Association of Mining and Exploration Companies.

“The vast majority of Australian greenfields mineral exploration is done by small, ASX listed mineral exploration companies reliant on retail investors,” AMEC CEO Simon Bennison said. 

“Increasing the attractiveness of mineral exploration companies to these investors will lead to an increase in Australian greenfields mineral exploration.”