The Association of Mining and Exploration Companies has issued a public plea for federal opposition leader Peter Dutton to clarify his stance on critical minerals production tax credits.
The Association of Mining and Exploration Companies has issued a public plea for federal opposition leader Peter Dutton to clarify his stance on critical minerals production tax credits.
Mr Dutton’s suite of recent public appearances at resources events in Western Australia suggested his stance on critical minerals tax credits – which he strongly opposed when announced by the federal government in May – may be softening.
But commentary from shadow treasury spokesperson Angus Taylor on ABC National radio this morning quashed that sentiment, according to AMEC.
“What we need to do is get back to basics,” Mr Taylor told ABC.
“There is no point talking about throwing government money around when you can’t build things competitively in this country.”
At a charity event last Friday, Mr Dutton voiced support for industry and lashed the complexity of the nation’s approvals processes. He suggested government support wouldn’t be enough to deliver growth in the critical minerals sector.
“There is government assistance that can be provided, but you run out of taxpayer money very quickly,” he said.
At a visit to the Diggers & Dealers Mining Forum in Kalgoorlie on Monday of this week, Mr Dutton said he had consulted industry extensively following the budget and suggested he was understanding of its position.
“There are some who are in favour, some who are against it, and some who advocate for a better way to support and assistance to be provided,” he said.
“In the end, we’ve got finite tax dollars.
“I would make sure that we can provide support, particularly through the approvals processes, because the one common denominator in all of these discussions, and one of the huge frustrations from the mining companies, is that they just can’t get approvals.”
AMEC chief executive Warren Pearce said the organisation was disappointed to hear Mr Taylor’s comments on radio today.
“It was refreshing to hear Mr Dutton during his WA trip appear to recognise that there is value to policies such as the [critical minerals production tax incentive],” he said.
“At no stage during his recent trip did he seem to oppose the idea like he once did
“But to have Mr Taylor categorically state on national radio today that ‘We don’t support the production credits’ seems to undermine the very purpose of Mr Dutton’s visit west.”
AMEC has been intimately involved with the creation and planning of the CMPTI, which the government plans to roll out from mid-2027.
The initiative would offer producers a 10 per cent tax rebate on value-added critical minerals materials over 11 years at a budgeted cost of $7 billion.
Mr Taylor was outspoken on the initiative from the start, labelling it “billions in handouts for billionaires” and flagging the opposition’s preference for a focus on fundamentals.
Mr Pearce said streamlined approvals and efficiencies were important, but that multiple governments had made promises without delivery.
“Industry has heard the same lines about getting back to basics for decades,” he said.
“Neither political party has delivered on these promises in their time in government.
“So it’s no surprise that industry is skeptical whether this can and will be delivered.”
“It feels like Mr Taylor is unaware that Australian industry is impacted by global policies. We either react and respond, or we watch these new industries and new jobs head overseas.”
Mr Pearce said the critical minerals production tax incentive was low risk, given it only rewarded those who had invested substantially in Australian projects to begin with.
“It’s a zero-risk approach,” he said.
“The companies will only receive the incentive once they have invested, established new facilities, and produce a value-added product.
“The opposition still has the opportunity to reconsider their position and provide support for this important initiative.”
Australia's critical minerals sector has languished over the last year, with a spate of closures in nickel compounded by deteriorating lithium prices placing strain on those supplying the battery metal abroad.
Mines Minister David Michael ruled out immediate-term royalty relief for lithium producers in WA at a press conference yesterday, but insisted he was listening to industry on the multitude of challenges it faced.
