- Production tax credit to provide significant support for
critical minerals producers
- Funding support to develop common-user facilities for small
and medium players
- Significant investment in data and maps will help industry
find new mineral deposits
- New production tax incentive to ramp up renewable hydrogen
production
The Cook Government has welcomed the almost $20
billion in funding support for critical minerals processing and resource
exploration announced by the Federal Government last night as part of its
2024-25 Budget.
A 10 per cent production tax credit totalling
$17.6 billion over 14 years for critical minerals producers will support
existing downstream processing activities as well as those entering production
in future.
The Federal Government's $10.2 million
investment in pre-feasibility studies to develop critical mineral common-user
processing facilities and help small and medium-sized aspirants become
producers, will also be broadly welcomed by industry.
A further $566.1
million commitment over 10 years will support industry in finding new deposits
of minerals and sources of energy and help build a Future Made in Australia.
This significant funding will deliver data, maps and other
tools for use by the resources sector that will point the way to new
discoveries, help power the economy and commit to the full mapping of Australia
over the next generation.
Western Australian producers will also
benefit from a $5.8 million critical minerals trade enhancement initiative
aimed at accelerating trade efforts to realise a premium for Australia's
critical minerals that are produced to high environmental, social and
governance (ESG) standards.
The
Cook Government also welcomed the Federal Government's new $6.7 billion
Hydrogen Production Tax Incentive of $2 per kilogram to encourage production of
renewable hydrogen over the next decade.
Another
important initiative is the $2 billion investment in a new round of the
successful Hydrogen Headstart program to provide long-term certainty for the
nascent industry, which will be critical for green iron and steel
opportunities.
Western Australia is well
positioned to play a significant role in Australia's critical minerals strategy
as a leading producer and exporter of battery materials with strong
environmental, social and governance credentials, and the announcements in
yesterday's Federal Budget acknowledge this State's critical role in the global
transition to net zero.
Comments attributed to Premier
Roger Cook:
"I congratulate the Federal Government
for its foresight and vision to assist Western Australia in becoming a world
leader in the downstream processing of critical minerals and production of
renewable hydrogen that will be essential in transitioning the globe to a
low-carbon economy.
"These commitments represent a big vote of confidence in the future of
Western Australia's powerhouse resources sector, and acknowledge its ongoing
importance to the national economy.
"I welcome the inclusion of all 31 critical minerals as qualifying for a
production tax credit, which is something that industry has been calling for.
"This news will come as welcome relief - particularly for WA nickel and
lithium miners facing extremely challenging market conditions.
"These investments also complement our
$500 million Strategic Industries Fund investment unveiled in last week's State
Budget to deliver common-user and other enabling infrastructure at strategic
industrial areas (SIAs) across regional and metropolitan WA.
"Collectively, the measures announced in the 2024-25 Federal Budget provide a
supportive environment to help underpin future investment decisions for major critical
minerals and hydrogen projects moving forward."
Comments attributed to Mines
and Petroleum Minister David Michael:
"These are significant investments in
the future of Western Australia and Australia's aspirations to become a major
global player in the downstream processing of critical minerals.
"A recent report commissioned by the
Association of Mining and Exploration Companies found the downstream
processing of critical minerals could add $2.4 billion and 4,220 jobs to
Australia's economy by 2035.
"I'd acknowledge the efforts of the
sector's peak industry bodies in advocating for a production tax credit and
other initiatives to support the downstream processing of critical minerals in
Australia.
"I also look forward to working with my
Federal counterpart Resources Minister Madeleine King towards securing the
balance of funds required for
the development of a Critical Minerals Advanced Processing (CMAP) facility.
"The CMAP
common user facility will focus on upstream and midstream activities to support
mineral processing, high purity metal refining and advanced materials
manufacturing.
"It will
enable companies a quicker pathway to commercial-scale investment decisions on
the downstream processing of battery and critical minerals in Australia.
"The State
Government committed $100 million to the CMAP in its recent State Budget with
the facility contingent upon matched funding from the Commonwealth."
