Australian mining group pushes govt for tax credit as lithium, nickel prices slump
SYDNEY - An Australian mining association has called for a new production tax credit during meetings with senior ministers called as nickel and lithium miners curtail projects and review new mines in response to a global slump in prices.
Miners BHP and Core Lithium are among those mothballing projects or cutting jobs because of a slump in nickel and lithium prices, weighed by subdued electric vehicle demand and an influx of Indonesian nickel supply.
In response, Australia should introduce a 10% production tax credit (PTC) for downstream producers to save jobs and preserve the country's ambitions of becoming a critical minerals powerhouse, Neil van Drunen, acting CEO of the Association of Mining and Exploration Companies (AMEC) said in a statement on Thursday.
Van Drunen made the request during a roundtable with miners and their associations organised by Federal Resources Minister Madeleine King and her state counterpart in Western Australia, the heartland of the country's mining industry.
“Nothing was off the table in discussions today," Van Drunen said in a statement. "Obviously, there is no silver bullet, and it will take a combination of initiatives to find a path forward."
Van Drunen said a PTC could be in place for the next federal budget in May and "would send a strong message of support to industry, investors and global markets".
In announcing the roundtable on Monday, King said the government supported the sector and she was determined to ensure Australian miners could compete with cheaper but lower grade minerals produced in less environmentally friendly ways overseas.
AMEC on Thursday also recommended government defer royalties, provide funding for shared infrastructure and reform the environmental approval process, among other changes.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation