The Western Australian Government has announced an extension of the potash industry royalty rebate scheme established in the 2022-23 State Budget, which is expected to make the scheme available to a larger number of potential sulphate of potash (SOP) producers in the state.
The extension of the scheme will provide a non-repayable 50 per cent rebate on royalties paid for two years to companies that make first SOP sales before the end of 2027.
No royalty rebate will be paid when the price of SOP exceeds AU$1,000 per tonne on average over a quarter.
Western Australian Mines and Petroleum Minister, Bill Johnston, said, “The McGowan Government remains committed to assisting the development of the potash and minerals in brine industry in Western Australia.
“By extending the royalty rebate to help this fledgling industry, we will continue to create jobs and community development opportunities, particularly in remote Aboriginal communities.
“Potash is an essential nutrient in agricultural fertilisers that underpins global agriculture by protecting crops from disease and pests.”
The Western Australian Government’s continued support complements existing assistance for Western Australia’s emerging SOP industry, including concessionary mining lease rents and specific Mining Rehabilitation Fund levy rates.
SOP projects proposed to be developed in the state are expected to be long-life operations spanning 30 to 40 years, that will provide hundreds of jobs and opportunities for communities in regional WA.
