Western Australia is the world’s largest lithium producer, with the Greenbushes, Pilgangoora and Mt Holland operations underpinning a globally significant jurisdiction.
But the state has been under threat from suppressed prices, and some mines have felt the pinch, with various operations scaling down or halting growth projects in response.
So the WA Government is stepping in, announcing a $150 million support package that will temporarily waive government fees to support the continuation of downstream processing for up to two years to a value of $90 million.
Port charges and mining tenement fees will be waived for up to two years for companies ramping up their lithium projects.
A $50 million loan facility has also been made available, providing lithium miners access to interest-free loans to help sustain their operations.
WA Premier Roger Cook set the scene for the support package.
“WA’s lithium industry supported more than 11,000 local jobs last financial year and has three new lithium hydroxide refineries currently in construction or commissioning,” Cook said.
“Lithium will continue to be an incredibly important element moving forward – particularly for the global energy transition.
“It is also at the centre of WA’s economic diversification story, as we work to position our state as a global leader in downstream processing.”
Cook said the package would provide “important temporary and responsible support” for WA’s lithium industry as it navigates a turbulent market.
In practice
The downstream processing component of the support package will support the state’s Kemerton, Kwinana and Covalent lithium refineries, each of which have faced their development hurdles.
Albemarle this year had to halt construction of a third production train at its Kemerton plant and move the second train into care and maintenance, leaving only the first train operating.
At Kwinana, only the first train has been constructed and is operating, while Covalent Lithium was expected to complete construction of its lithium refinery in late 2024.
It appears only lithium producers and not explorers will be eligible for the waived port charges and tenement fees, demonstrating that this is very much a production-first package. Same goes for the $50 million loan facility.
Industry response
The Association of Mining and Exploration Companies (AMEC) welcomed the support package, suggesting it “strikes the right balance”.
“The Lithium Industry Support Program is a comprehensive package to support our industry through tough market conditions,” AMEC chief executive officer (CEO) Warren Pearce said.
“It prioritises the protection of jobs now and stabilises the future of an important emerging industry.”
The Chamber of Minerals and Energy WA (CME) also offered its support, with CME CEO Rebecca Tomkinson saying the package is “welcome recognition” of the “commercial reality facing key players in WA’s resources sector”.
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