WA resources sector welcomes nearly $20b in funding
The WA Government has received almost $20b in funding support for critical minerals processing and resource exploration announced by the Federal Government’s 2024-2025 budget.
Critical minerals producers with existing downstream processing activities and those entering production in the future will be supported by a 10% production tax credit of $17.6b over 14 years.
A $10.2m investment in pre-feasibility studies to develop critical mineral common-user processing facilities and help small and medium-sized companies become producers.
A further $566.1m commitment over 10 years will support the industry in finding new deposits of minerals and sources of energy and help build a future made in Australia.
This funding will deliver data, maps and other tools that will point the way to new discoveries, help power the economy and commit to the full mapping of Australia.
WA producers will also benefit from a $5.8m critical minerals trade enhancement initiative aimed at accelerating trade efforts to realise a premium for Australia’s critical minerals.
WA Premier Roger Cook commented on the funding.
“These commitments represent a big vote of confidence in the future of WA’s powerhouse resources sector and acknowledges its ongoing importance to the national economy,” he said.
“These investments also complement our $500m Strategic Industries Fund investment unveiled in last week’s State Budget to deliver common-user and other enabling infrastructure at strategic industrial areas across regional and metropolitan WA.”
Additionally, a $6.7b hydrogen production tax incentive of $2/kg to encourage production of renewable hydrogen over the next 10 years.
Another initiative is the $2b investment in a new round of the Hydrogen Headstart program to provide long-term certainty for the growing industry, which will be critical for green iron and steel opportunities.
WA Mines and Petroleum Minister David Michael says these investments are significant for both WA and Australia.
“These are significant investments in the future of WA’s and Australia’s aspirations to become a major global player in the downstream processing of critical minerals,” he said.
“I also look forward to working with my Federal counterpart Resources Minister Madeleine King towards securing the balance of funds required for the development of a Critical Minerals Advanced Processing (CMAP) facility.
“The CMAP common user facility will focus on upstream and midstream activities to support mineral processing, high purity metal refining and advanced materials manufacturing.”