The Critical Minerals Production Tax Incentive (CMPTI), a key component of the Future Made in Australia Act, is gaining momentum with support from various political factions in Western Australia. The Western Australian Nationals have voiced their support for the CMPTI, a move lauded by the Association of Mining and Exploration Companies (AMEC). The CMPTI aims to provide a 10% tax credit for companies committed to downstream processing of critical minerals within Australia, seeking to capture more value domestically. AMEC highlights the bipartisan nature of support, noting backing from the Labor government, Liberal Party, and National Party in Western Australia.
AMEC’s CEO, Warren Pearce, emphasized that the CMPTI is currently the only policy focused on maximizing value from Australia’s mineral resources. He expressed confidence that the incentive will remain in place regardless of the outcome of the upcoming federal election, citing support from both sides of Parliament. The tax incentive is considered one of the largest commitments from the Australian government to the critical minerals sector, arriving at a time of global economic uncertainty. Geoscience Australia reports that Australia possesses some of the world’s largest reserves of critical minerals, including cobalt, copper, lithium, and rare earths. The Department of Industry, Science and Resources (DISR) indicates Australia holds the second-largest copper resources globally and is a significant exporter and producer of refined copper.
