The Association of Mining and Exploration Companies (AMEC) says if Australia wants to diversify and achieve its aspirations to further downstream critical minerals, the Critical Minerals Production Tax Incentive makes Australia competitive.
The organisation is taking part in the Senate Economics Legislation Committee’s inquiry into the Australian Government’s proposed Future Made in Australia production tax credits.
“Nobody has ever claimed this is a silver bullet, but it’s certainly a bullet in the fight to establish a successful domestic critical minerals downstream processing industry,” AMEC acting Chief Executive Neil van Drunen says.
As part of the legislative process, van Drunen represented members and stakeholders to answer questions and detail the association’s support for the bill.
In November last year, the federal government introduced a legislation that will provide tax incentives for critical minerals production. The proposed law will set up a tax incentive worth 10% of the relevant processing and refining costs for Australia’s list of 31 critical minerals.
To date, the inquiry has received wider industry support, with an acknowledgment that the Critical Minerals Production Tax Incentive (CMPTI) has the potential to benefit and further motivate companies with current and future projects in Australia.
The inquiry is considered an essential part of the process as it provides an opportunity for industry and multiple sectors to be consulted on the tweaks and adjustments required for the plan to work.
AMEC says the inquiry was held at the right time and is considered a “positive” step in the right direction to ensure proper consultation leads to better outcomes.
“This, along with other measures to lower investment, development, and operating costs, will provide greater certainty on risk and reduce time to market to make Australia a more attractive place to go downstream,” van Drunen says.
He adds that the incentive is considered a growth opportunity for the nation to seize on its natural resources, as well as a catalyst to create new Australian industries.
“Australia has long approvals timeframes, land access issues and high construction costs,” van Drunen notes.
“The CMPTI must be paired with serious regulatory reform to reduce the current burden faced by companies developing projects.”
The AMEC is a national association representing over 500 member companies from all around Australia. The members include explorers, emerging miners, producers, and a wide range of businesses and service providers working in and for the industry.
Mining.com.au is an official member of AMEC.
Write to Aaliyah Rogan at Mining.com.au
Images: The Association of Mining and Exploration Companies
