The Association of Mining and Exploration Companies (AMEC) is hoping a Production Tax Credit (PTC) will be one of the outcomes of tonight’s budget.
A PTC is a refundable tax credit, which means a qualified recipient will receive a direct reduction in their tax bill.
Speaking to Mining.com.au ahead of the handing down of the budget at 7.30pm AEST tonight, CEO Warren Pearce believes that the government does have a willingness to listen to some of the issues being faced in the critical minerals sector.
“If a PTC is given the green light, it will help make Australia more competitive in the global race to secure critical minerals required for the energy transition,” Pearce says.
He adds that a PTC will assist in helping companies become more competitive on a global scale.
AMEC believes the biggest priority for the government in terms of the mining sector will be the removal of red tape.
“If the mining sector is to get on with the job of helping to decarbonise the economy, it needs the support of the government to assist with approval times and delays to projects that prove costly for companies and investors,” Pearce says.
Another incentive that the AMEC acknowledges is important to drive greater investment in Australia’s mining sector is ensuring that the world is aware of the country’s vast resources.
Pearce says there is a large amount of minerals needed to decarbonise global economies in Australia.
“If the government commits to acknowledging the importance of the resources sector and provides smart and targeted policy, this will go a long way to drive greater investment in the industry,” he says.
The Association of Mining and Exploration Companies is a voice for Australia’s mineral exploration and mining industry. The association represents over 450 member companies from all around Australia.
Write to Aaliyah Rogan at Mining.com.au
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