❓ Mr Marmion questions the Premier about potential royalty relief for lithium miners due to falling prices and job losses. The Premier acknowledges a Rhodes scholar and states no lithium producers requested relief, highlighting the recently announced royalty rate was welcomed and anticipates future demand.
AnsweredQoN 1041Legislative Assembly
QuestionView source ↗
LITHIUM INDUSTRY —
ROYALTY CONCESSION
1041. Mr W.R. MARMION to the Premier:
I refer to the recent collapse of
global lithium prices and approaches from the lithium sector to the government
seeking similar concessions to those given to junior iron ore miners. Can the
Premier confirm that he has ruled out any relief for lithium miners; and, if
so, why is he not prepared to provide any support, given that hundreds of jobs
have already been lost?
ROYALTY CONCESSION
1041. Mr W.R. MARMION to the Premier:
I refer to the recent collapse of
global lithium prices and approaches from the lithium sector to the government
seeking similar concessions to those given to junior iron ore miners. Can the
Premier confirm that he has ruled out any relief for lithium miners; and, if
so, why is he not prepared to provide any support, given that hundreds of jobs
have already been lost?
AnswerView source ↗
Prior
to answering the question, can I also acknowledge Natasha Lutz, the Rhodes
scholar at the back of the chamber. The member for Warren–Blackwood
introduced me to Natasha before question time. She was selected recently and is
off to Oxford, as Rhodes scholars do. I asked Natasha what her grade point
average at university was. She probably will not mind me saying that it was
seven. I think that means she got a high distinction in every single subject.
That is extraordinary. I am not sure she will ever be the Premier here,
members; she is way too smart for that!
Several members interjected.
Mr M. McGOWAN : Good luck,
Natasha, with your further studies and to your family.
The Minister for Mines and Petroleum
advises me that none of the lithium producers has requested royalty relief or
royalty reduction. The fact is that we recently announced a royalty for lithium
that is broadly in line with what the lithium producers asked for and was
welcomed by the industry. I think it will be seen as a very fair royalty on the
industry. As members know, or may not know, there are complexities involved in
setting a royalty for lithium. Therefore, the royalty we set, which is five per
cent on the inputs, which is essentially the spodumene rate, is the same rate
that was set on hydroxide. It was largely regarded as a win for the industry
and they are broadly very happy with what we came up with. We consulted with
the Association of Mining and Exploration Companies, the Chamber of Minerals
and Energy and the like to come up with that rate.
I
suspect there has been a fairly temporary issue with international lithium
prices. When I was in India last week, I learnt of India's
policy that by 2023 all two-wheeler and three-wheeler vehicles—there
are a lot of three-wheeler vehicles over there—will be electric
powered. Countries around the world, particularly those with significant smog
issues, are heading in that direction. I can tell members that when I was in
Delhi, there was a significant smog issue. That is the direction countries are
going. I suspect Western Australian lithium will be hotly sought after in
coming years.
to answering the question, can I also acknowledge Natasha Lutz, the Rhodes
scholar at the back of the chamber. The member for Warren–Blackwood
introduced me to Natasha before question time. She was selected recently and is
off to Oxford, as Rhodes scholars do. I asked Natasha what her grade point
average at university was. She probably will not mind me saying that it was
seven. I think that means she got a high distinction in every single subject.
That is extraordinary. I am not sure she will ever be the Premier here,
members; she is way too smart for that!
Several members interjected.
Mr M. McGOWAN : Good luck,
Natasha, with your further studies and to your family.
The Minister for Mines and Petroleum
advises me that none of the lithium producers has requested royalty relief or
royalty reduction. The fact is that we recently announced a royalty for lithium
that is broadly in line with what the lithium producers asked for and was
welcomed by the industry. I think it will be seen as a very fair royalty on the
industry. As members know, or may not know, there are complexities involved in
setting a royalty for lithium. Therefore, the royalty we set, which is five per
cent on the inputs, which is essentially the spodumene rate, is the same rate
that was set on hydroxide. It was largely regarded as a win for the industry
and they are broadly very happy with what we came up with. We consulted with
the Association of Mining and Exploration Companies, the Chamber of Minerals
and Energy and the like to come up with that rate.
I
suspect there has been a fairly temporary issue with international lithium
prices. When I was in India last week, I learnt of India's
policy that by 2023 all two-wheeler and three-wheeler vehicles—there
are a lot of three-wheeler vehicles over there—will be electric
powered. Countries around the world, particularly those with significant smog
issues, are heading in that direction. I can tell members that when I was in
Delhi, there was a significant smog issue. That is the direction countries are
going. I suspect Western Australian lithium will be hotly sought after in
coming years.
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