Albemarle Kemerton - Critical Mineral Tax Incentive

Question

The Critical Minerals Production Tax Incentive, a 10 per cent refundable offset,commences on 1 July 2027, around 16 months after Kemerton entered care and maintenance. a. Does the Department accept that the incentive arrived too late to assist Kemerton? b. In August 2024 the then Resources Minister stated the incentive ''would not have helped Albemarle at this point.'' Is that still the Department's view, and what does it indicate about the design and timing of the measure? c. The same Minister said the Government would ''look into bringing it forward.'' In the period since, has the Department provided advice on bringing the start date forward? What did that advice say, and why hasn't it been actioned? d. Albemarle's chief executive has cited a structural cost gap facing Western hard-rock lithium conversion that recent price improvements couldn't close. Has the Department modelled the cost differential between Western Australian and Chinese lithium hydroxide conversion, and is a 10 per cent offset sufficient to close it?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• BI-024_Liddle_Albemarle Kemerton - Critical Mineral Tax Incentive_DISR.pdf (opens in a new tab)
• BI-025_Liddle_Albemarle Kemerton - idling_DISR.pdf (opens in a new tab)