The Western Australian Nationals are getting behind the Critical Minerals Production Tax Incentive (CMPTI), with the party’s support welcomed by the Association of Mining and Exploration Companies (AMEC).
Under the Future Made in Australia Act, the CMPTI policy aims to capture more value for Australian minerals by providing a 10% tax credit for companies committed to the downstream processing of critical minerals here in Australia.
In November 2024, the Australian Government introduced legislation that will provide tax incentives for critical minerals production. As Mining.com.au previously reported, the CMPTI has potential to benefit and further motivate companies with current and future projects in Australia.
AMEC says the CMPTI has received support from all levels of Western Australian politics, which includes the recently re-elected Labor government, the opposition Liberal Party and the National Party.
CEO Warren Pearce says AMEC supports WA Nationals Candidate Mia Davies and her acknowledgment that the CMPTI is a good policy.
“A policy that focuses on realising more value from our minerals,” Pearce says. “Right now, it is the only policy that does so, that’s the truth of it.”
Pearce notes that AMEC is aware there is broader support for the CMPTI in the federal Parliament.
“We are pleased to say that members from both sides of parliament have expressed their support for the critical minerals sector, via this policy lever,” he says.
“This provides us with confidence that regardless of the result in next month’s election, this incentive is here to stay.”
AMEC adds that the tax incentive is among the largest commitments from the Australian Government to critical minerals and comes at a time of increased global uncertainty.
The incentive has potential to support projects worth billions of dollars, create jobs, support regional communities and develop important supply chains for Australia.
“This is an incentive that more politicians should recognise and look to promote,” Pearce adds.
“This remains a real opportunity to start attracting investment that has previously found its way to other countries.”
The Future Made in Australia agenda aims to maximise opportunities as the world moves to net zero and secure the nation’s place in a changing global environment.
In the 2024-25 Budget, the federal government committed $22.7 billion over the next decade to build a Future Made in Australia.
According to Geoscience Australia, the nation is home to some of the largest resources of the world’s critical minerals. Some of these minerals include cobalt, copper, lithium, manganese, rare earths, tungsten, and vanadium.
The nation, for instance, has the second largest accumulation of copper resources in the world, according to the Department of Industry, Science and Resources (DISR) Resources and Energy Quarterly for March 2025.
In addition, Australia is the fifth largest refined exporter and the eighth largest producer, as of 2024.
In Q4 2024, copper exploration expenditure increased by 1.9%, totalling $575 million, which is a 13% decrease compared to 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
