The Association of Mining and Exploration Companies (AMEC) has called on the Australian government to introduce a new production tax credit (PTC), as the current nickel and lithium price slump impacts the country’s mining industry.

Australia’s resources minister Madeleine King and Western Australian minister for mines, David Michael met with nickel and lithium producers on Thursday to discuss the challenges and possible support measures. The roundtable included heads of resources companies and representatives of the Chamber of Minerals and Energy WA, AMEC, Minerals Council of Australia and other unions.

Among key recommendations, AMEC suggested the introduction of a PTC in the next federal budget, offering a 10% tax credit for producers of downstream materials, Kallanish learns from an AMEC statement. 

“Now is the time to introduce a PTC,” notes acting AMEC chief executive, Neil van Drunen. “Doing so would make Australia 10% more competitive for downstream processing.”

“A PTC could be in place for the next federal budget. Doing so would send a strong message of support to industry, investors and global markets,” the ceo adds.

The body also recommended government to defer royalties, reform the environmental approval process, provide funding for shared infrastructure and champion a global green transparent price index.

“Nothing was off the table in discussions today [Thursday],” van Drunen notes. “Obviously, there is no silver bullet, and it will take a combination of initiatives to find a path forward.”

Following the roundtables, the government said in a separate statement it has resolved to “accelerate” discussions within the government to incentivise investments, such as through taxation. 

The Australian government will “urgently progress discussions with state and territory governments on common user infrastructure for critical minerals to include strategic materials like nickel to complement the Strategic Infrastructure Hubs Scoping Study,” the statement said. It will also hold further discussions with the Chamber of Minerals and Energy WA about the future of the nickel industry and the role of royalties.