The Government of Western Australia on Nov. 22 announced an extension of the potash industry royalty rebate scheme established in the 2022-23 State Budget. The extension will provide a non-repayable 50% rebate on royalties paid for two years to companies that make first sulfate of potash (SOP) sales before the end of 2027. No royalty rebate will be paid when the price of SOP exceeds A$1,000/mt on average over a quarter.
The government said the extension is expected to make the scheme available to a larger number of potential SOP producers in Western Australia. It said the continued support complements existing assistance for Western Australia’s emerging SOP industry, including concessionary mining lease rents and specific Mining Rehabilitation Fund levy rates.
The government said the 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.