Australia considers tax credits for mineral...

Australia considers tax credits for mineral processing

00:03AM

According to foreign news on February 28, the head of a mining association said on Wednesday that the Australian government is considering implementing tax exemptions for companies that build processing facilities to increase the value of green energy minerals such as nickel and lithium. Warren Pearce, chief executive of the Australian Association of Mining and Exploration Companies (AMEC), said the Australian government was seriously considering the implementation of a 10% production tax credit policy, which would apply to companies developing critical mineral processing facilities.

He told reporters in Canberra that the tax credit would be extended to companies outside Australia's nickel industry, including lithium, vanadium, cobalt, graphite and rare earths producers, according to a recording of his press conference provided by AMEC.

"Globally, other countries are making significant market interventions that are making it difficult for Australian companies to compete," Pearce said.

"We want to keep more mineral value in Australia...by building high value-added industries," he said.

Asked whether the government had adopted AMEC's recommendations, he said, "We know that the government is taking this recommendation seriously as it prepares the 2024 budget."

Treasurer Jim Chalmers and federal Resources Minister Madeleine King did not immediately respond to requests for comment on the tax credits.

However, Madeleine King said last month that production tax credits were under consideration, although she could not guarantee the plan would pass.

Companies that are building or have said they will consider building higher value-added plants include Pilbara Minerals, IGO and Mineral Resources.