The federal government's decision to axe a tax deduction for people investing in small mineral exploration companies is short-sighted and a shame, according to one of Australia's most successful explorers of recent times.

Mark Bennett, whose team discovered Western Australia's Nova nickel, copper and cobalt deposit in 2012, joined the association of mining and exploration companies (AMEC) and Minotaur boss Andrew Woskett in lamenting the surprise axing of the scheme in this week's federal budget.