THE Western Australian state government will waive port charges and mining tenement fees for lithium miners as they ramp up projects.
The fees will be waived for up to 24 months to the value of $9.37 million.
In a media release on 27 November, the government said Synergy and the Water Corporation will also temporarily waive government fees to support the continuation of downstream processing of lithium for up to two years, to a total value of $90 million.
A $50 million loan facility will also be available to help lithium miners access temporary interest-free loans to help sustain their operations, based on demonstrating their current financial position and operational plan.
Companies will be required to repay the loans through regular quarterly payments over the two years following the end of the interest-free period, which will cease after average lithium spodumene prices have exceeded US$1100 per tonne for two successive quarters, or by 30 June 2026 if not stopped before then.
The release said WA’s lithium industry has grown rapidly in recent years to be the biggest hard rock industry of its type in the world, supplying approximately 50% of the world’s lithium.
In the 2023-24 financial year, lithium miners generated $8.4 billion in sales and delivered $710 million in State royalties.
During the same period, the industry supported more than 11,000 Western Australian jobs.
However, the industry has experienced a sudden and unexpected plunge in the price of lithium this year, which has prompted some mine and processing plant suspensions and impacted jobs.
In response, the State Government will provide support to lithium miners in the ramp-up phase of production and downstream processing facilities for a period of up to 24 months, after which lithium prices are expected to recover to an economically sustainable level.
Mines and petroleum minister David Michael said the support package was part of the government’s commitment to an economic diversification strategy and downstream processing capabilities.
“It will also help protect the jobs of thousands of Western Australians, working in skills areas that will be crucial to the state’s future as a critical minerals powerhouse,” Mr Michael said.
“Lithium is a key element in the global energy transition as we move to achieve a goal of net zero emissions by 2050.
“Our lithium miners are experiencing very challenging conditions currently, but we know they will play a crucial role in the future energy transition.
“We’re providing them with temporary and responsible support now to give them the best chance of continuing to supply the world with lithium products today and well into the future.”
