- Cook Government provides support to nickel
producers through royalty relief
- Nickel Financial Assistance Program to deliver a
50 per cent royalty rebate for 18-months, when prices are below $US20,000 per
tonne, repayable over 24-months
- Program aims to protect local jobs, and ensure
WA remains a battery metals powerhouse - despite headwinds currently being
experienced by the industry
The Cook Government will offer royalty relief to Western
Australia's crucial nickel industry, supporting thousands of local jobs as well
as the State's vision of becoming a global battery minerals processing hub.
The WA nickel industry has experienced extremely
challenging global market conditions in recent times, which have prompted mine
and processing plant suspensions, and significantly impacted jobs.
These challenging conditions have been caused by a
significant structural disruption to the global market prompted by a surge in
lower cost supply from other countries coming
onstream.
In response, the State Government will offer local nickel
producers a 50 per cent royalty rebate - starting from the March quarter 2024 -
and will be available over an 18-month period through a new Nickel Financial
Assistance Program.
The rebate will be provided if the average price of
nickel in concentrate is below US$20,000 per tonne for a given quarter. The
rebate will then be repayable by the companies in equal quarterly instalments over the
following 24-months.
Companies will
need to apply for financial assistance and provide details of their need for
support - including information on their finances and projected economics, as
well as steps taken to adjust to the current price environment and structural
changes in the industry.
Comments attributed to Premier Roger Cook:
"The nickel industry supported almost 10,000 jobs, and
generated sales of more than $5 billion last financial year.
"It is also an essential component of the
State's vision of becoming a global hub for the downstream processing of
battery metals.
"Protecting
local jobs is a key priority for my Government, and we recognise retaining our value-add,
critical minerals sector is a key part of our plan to diversify WA, and set it
up for future success.
"This
is highlighted by our current work to refresh and update the Government's Future
Battery and Critical Minerals Industries Strategy, which was established in
2019.
"Our
Nickel Financial Assistance Program will support nickel producers in their hour
of need, providing temporary assistance to help with the structural changes to
the nickel industry."
Comments attributed to Treasurer Rita
Saffioti:
"Our nickel industry plays a
huge role in our State's economy, and, more importantly employs thousands of
Western Australians.
"We've always made it clear that
decarbonising and diversifying our economy is essential for our State's future,
and critical minerals will have an important role to play in that.
"That's why we're stepping in
and providing this temporary and conditional assistance, to support the
industry through this difficult period.
"The relief is consistent with
previous royalty assistance programs to assist lithium producers, and junior
iron ore producers, to adjust to changing market conditions.
Comments attributed to Mines and Petroleum
Minister David Michael:
"Our nickel miners are competing
internationally with mining jurisdictions that have significantly lower
environment, social, and governance standards.
"It's important that they are supported to weather the storm
of current market conditions, so they can be part of ongoing and future efforts to decarbonise the globe.
"The industry has asked for Government support, and the Cook Government
is delivering."
