Core Lithium has joined other miners calling for a 10 per cent production credit

Struggling Core Lithium has joined a slew of other critical minerals companies seeking Commonwealth support to help breathe new life into the troubled lithium sector.

Struggling Core Lithium has joined a slew of other critical minerals companies seeking Commonwealth support to help breathe new life into the troubled lithium sector.

Perth-based Core, which suspended mining on its Grants mine earlier this year because of tanking lithium prices, was one of five critical minerals miners who attended a roundtable with Federal Resources Minister Madeleine King on Thursday.

Core’s chief executive Gareth Manderson attended the roundtable which also attracted lithium explorers.

As well as the lithium roundtable, Minister King also hosted a meeting of nickel miners, both of which attracted about 30 delegates from each sector.

Neil van Drunen, chief executive of the Association of Miners and Exploration Companies (AMEC), called for the introduction of a 10 per cent Production Tax Credit for downstream lithium producers.

Neil van Drunen from the Association of Mining and Exploration Companies. Picture: ANDREA JOHNSTON

He said the roundtable focus was to save jobs and keep Australia’s downstream critical minerals industry alive.

“Now is the time to introduce a production tax credit, that would provide a 10 per cent tax credit for downstream materials producers and reduce the production cost disadvantage faced by Australian projects compared to the United States.

“Now is the time to introduce a PTC. Doing so would make Australia 10 per cent more competitive for downstream processing,” Mr van Drunen said.

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

The PTC has strong support from lithium, nickel, rare earths and vanadium developers and producers, along with the broader industry and international Electric Vehicle maker Tesla.

Mr van Drunen also called for structural changes including funding for shared infrastructure and common user facilities, deferment of royalty payments and championing a green transparent price index.

“The backbone of the global energy transition is a strong critical minerals industry. Today was a frank conversation about what is needed to ensure Australia maintains its competitive advantage in critical minerals,” Mr van Drunen said.

“Core faces a challenging international market with the price globally suppressed. This was a focus of the round table, particularly the need to protect jobs because if Australia wants to go downstream, we need to upstream mines.

“Australia’s advantage globally is we’ve got the rocks here. Core is in a great location with Middle Arm just down the road,” he said.

“It’s incredibly well placed and some of the other mines around Australia would be praying for such a good location. Unfortunately, international markets have driven down price, which is squeezing everybody.”

Minister King warned miners there were no guarantees a PTC would be introduced.

“I simply can’t make any commitments on the level of that tax credit, or even indeed if we do it,” Ms King said.

“What I do want to assure those producers and anyone that’s interested in this topic is that we are pursuing this, because we understand it is an incentivising way of making sure we go into downstream processing.”