Today the Western Australian State Government has listened to calls from Industry for a competitive lithium royalty rate.
As announced, the Government will, as soon as practicable, introduce a five percent feedstock royalty rate for lithium hydroxide and lithium carbonate, where those are the first products sold by a lithium produce and the feedstock is spodumene concentrate. (link here)
“Today’s royalty rate announcement helps Western Australia compete internationally to lock its place in the global lithium value chain,” said Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies.
The Western Australian Mining Regulations, specifically regulation 86, sets the lithium royalty rate as 5%. Today’s announcement will adjust the royalty to increase the incentive for companies to invest in Western Australia.
“Defining the royalty provides certainty for companies investing in Western Australia and will support the financing of projects and further investment.”
“AMEC called for the Government to introduce appropriate incentives to encourage development throughout the supply chain in the Lithium Industry in Australia Report published with Future Smart Strategies in January 2018.” (link here)
“Western Australia has a phenomenal geological opportunity, particularly in battery minerals, but needs to make sure the regulatory settings are right so companies will choose to invest here. Today’s announcement increases certainty and Western Australia’s investment attractiveness for lithium downstream processing,” said Mr Pearce.