The Chamber of Minerals and Energy WA welcomes today’s announcement of a relief package for the State’s lithium producers.
CME Chief Executive Officer Rebecca Tomkinson said it was now clear lithium prices were likely to be lower for longer but that the long-term prospects of the commodity remained strong.
“Falling lithium prices have forced a growing number of lithium operations to suspend or cease operations over the past 18 months,” Ms Tomkinson said.
“However, we know lithium remains a key commodity for the global energy transition and WA is well-placed to play a major role both mining and processing the crucial battery input.
“CME has long advocated for State Government assistance to help lithium facilities through this difficult period and ensure they are well placed to quickly ramp up production when commodity prices improve.
“Today’s announcement is welcome recognition of the commercial reality facing key players in WA’s resources sector.
The support package for lithium miners in the ramp-up phase of production, as well as downstream processing facilities, includes temporarily waiving fees associated with Government Trading Enterprises such as Synergy and Water Corporation for up to 24 months.
Port charges and mining tenement fees will also be waived for up to two years, while a $50 million loan facility will give miners that can demonstrate their long-term viability access to interest-free loans to sustain their operations.
Ms Tomkinson said lithium was critical to global decarbonisation goals and WA had world-class supply at its fingerprints.
“It’s important for governments to act when necessary to support the sector through periods of temporary market weakness and keep WA’s skin in the game for when the market recovers,” she said.
