The Albanese government is fast-tracking a system of production tax credits to try to protect the ailing nickel mining industry, and is prepared to extend the credits to lithium miners should the price of that critical mineral also continue to fall.
“We are looking towards smart, targeted, time-limited support. This is a short-term issue for what is in the long term, a very critical industry for Australia,” he told reporters in Perth. A government source said this was consistent with the plans to give BHP and other nickel producers tax credits. With the lithium price also falling due to cheap, overseas rivals, the source said the credits would be extended to lithium miners if need be.While the government has Treasury working up a plan, the Association of Mining and Exploration Companies and other industry players have proposed a production tax credit of at least 10 per cent to reduce costs and spur investment in downstream processing of battery and strategically important minerals.
The report is endorsed by Andrew Forrest’s Wyloo, lithium heavyweights Pilbara Minerals and Mineral Resources, nickel and lithium producer IGO Limited and others. Canadian company First Quantum welcomed the royalty relief that will apply to nickel produced at its Ravensthorpe mine in WA.
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Source: FinancialReview - 🏆 2. / 90 Read more »