Australian mining group pushes govt for tax credit as lithium, nickel prices slump

Core Lithium

25/01/2024 07:51

By Lewis Jackson
       SYDNEY, Jan 25 (Reuters) - 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  BHP.AX  and Core Lithium  CXO.AX  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.

 (Reporting by Lewis Jackson
Editing by Mark Potter)
 ((lewis.jackson@thomsonreuters.com; +61477406822; Reuters
Messaging: @lewjackk))