The Western Australian Government has allocated $30 million to expand a fee waiver initiative to support two lithium hydroxide producers — Tianqi Lithium Energy Australia (OTCQB:TQLCF) and Covalent Lithium — in the state.
As part of the allocation, the extended initiative offers a waiver on government fees and charges for both companies until 31 December 2027. The original initiative was due to expire at the end of 2026.
The extension of the fee waiver supports Western Australia’s ‘strategically important’ lithium hydroxide processing facilities amid an ongoing period of volatile pricing for the commodity and environment of rising operating costs.
Mines and Petroleum Minister David Michael says both companies have a “vitally important” role to play in critical minerals processing in the state.
“The Cook Labor Government believes it is crucial to support these two strategically important businesses while they battle with volatile commodity prices amid a period of rising costs; that’s why we decided to extend the crucial fee waiver initiative,” Michael says.
“This initiative provides support ahead of the introduction of the Commonwealth’s Critical Minerals Production Tax Incentive, which provides a 10% rebate on processing costs and comes into effect on 1 July 2027.”
In conjunction, the Western Australian Government will also commit $5 million in funding to facilitate the development of standards for the reuse of lithium by-product in construction materials, reducing disposal costs.
This support follows the Western Australian Government’s previously reported $15 million allocation for interest-free loans to help the state’s nickel miners still in operation and support the potential restart of idled mines and ramp-up of new projects.
Tianqi Lithium Energy Australia is a joint venture between Tianqi Lithium, which is a global producer of lithium, and IGO (ASX:IGO). The company manufactures battery-grade lithium hydroxide from spodumene mined and concentrated at the Talison Mine.
Covalent Lithium is focused on its flagship projects comprising the Mount Holland Mine and concentrator, as well as the Kwinana Refinery.
Write to Aaliyah Rogan at Mining.com.au
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