An Australian mining association urged the introduction of a new production tax credit at a meeting with senior ministers. The meeting comes at a time when nickel and lithium miners are under pressure from the world to cut back projects and reevaluate new mines.
Miners such as BHP and Core Lithium have shelved projects or laid off workers due to weak demand for electric vehicles and an increase in nickel** in Indonesia.
In this context, Australia should introduce a 10% Production Tax Credit (PTC) to support downstream producers, save jobs and maintain its status as a mineral powerhouse, Neil van Drunen, chief executive of the Australian Association of Mining and Exploration Companies (AMEC)**, said in a statement on Thursday.
The suggestion was made at a roundtable with miners and their associations, chaired by Federal Resources Minister Madeleine King, organised with her counterparts in Western Australia. Western Australia is the heartland of Australia's mining industry.
In a statement, Van Lunin said: "Nothing is impossible in today's discussion. Obviously, solving the problem requires multiple measures, and there is no single silver bullet. ”
He also said that the PTC could be implemented in the next federal budget in May, which would send a strong message of support to industry, investors and global markets.
* Support for the sector was highlighted by Resources Minister Kim, who expressed her determination to ensure Australian miners can remain competitive against overseas competition, even though these competitors may be producing in less environmentally friendly ways and with lower mineral yields.
AMEC also made a number of proposals on Thursday to postpone royalties, fund shared infrastructure and reform the environmental approval process to support the sustainable development of the mining industry.