Vanadium Production Tax Credits

Just when you thought the news could not get any better for Surefire Resources.

It is reported in The Australian today that the PM is about to launch a fresh support package for future facing metals including vanadium.

The new scheme to be announced shortly is designed to assist miners in Qld and WA. The scheme involves a tax credit for up to 10% of the minining production costs for certain minerals including but not limited to lithium, nickel, cobalt and vanadium.

Surefire could earn a tax credit to help cover production costs. It is not applicable to explorers, the company must be in production to qualify.

Fingers crossed.

See part of the report below published in The Australian overnight.

***********************************************
Anthony Albanese will use the budget to sandbag seats in Western Australia and Queensland and shield struggling nickel, lithium and rare earths producers, with the government close to finalising major support packages including targeted production tax credits for miners.

Ahead of the Prime Minister travelling to Perth next week to spruik funding aimed at ensuring critical minerals and rare earths companies remain competitive in a volatile global market, Treasury is understood to be close to landing the design of a production tax-credits scheme.

A production tax credit was raised as the industry’s preferred option late last year by the Association of Mining and Exploration Companies, as lithium and nickel prices tumbled, putting pressure on producers. First Quantum Minerals, which in 2021 sold a 30 per cent stake in its Ravensthorpe operations to Korean steelmaking giant POSCO, this week announced it was putting its WA nickel mine into care and maintenance. About 330 jobs will be lost.

AMEC and mining industry chiefs have floated a proposed production tax credit that would refund 10 per cent of the production costs of chemicals such as lithium hydroxide, nickel sulphate, vanadium oxide and rare earth oxides. The credit would be refundable in cash to those companies not yet turning a profit.

Even if Mr Albanese does not make an announcement on production credits while in Perth, the mining industry is increasingly confident the government will support the measure in the budget.