Potash to win in $1.3bn diversification fund

A particular royalty rebate for potash producers was introduced within the funds at the moment, as huge hopefuls corresponding to BCI Minerals develop tasks.

Premier Mark McGowan mentioned the federal government would spend $1.3 billion via a fund to diversify the economic system, and touted the state’s 3.4 per cent unemployment price as an indication its technique up to now had been profitable.

There could be an additional $70 million for tourism, $41 million for worldwide training, $50 million for land improvement and $80 million extra for business attraction.

The tally included $332 million for Geraldton Port, an iron ore and grain export terminal, and $78 million for Lumsden Level at Port Hedland.

Mr McGowan additionally reeled off sectors corresponding to area, vital minerals, potash, and name centres, which might obtain authorities assist.

Potash producers will get a 50 per cent royalty rebate costing the federal government about $10 million over the subsequent three years.

It’s understood the potash royalty rebate follows requests from business.

Stories have indicated the worth of potash, utilized in fertiliser, had final 12 months soared to ranges not seen for greater than a decade.

Different commodities had beforehand been given short-term royalty rebates to assist new industries get off the bottom, together with magnetite in 2013 and lithium in 2020.

A collection of potash tasks have been within the pipeline in Western Australia, with the most important being BCI Minerals’ Mardie improvement.

BCI held a sod-turning occasion in March for the $1.2 billion venture. 

In March, Enterprise Information reported virtually 40 per cent of BCI was owned by WA entrepreneur Kerry Stokes, whose empire additionally contains Seven West Media and Seven Group Holdings.

The record of native potash gamers additionally contains Kalium Lakes, Agrimin, Australian Potash and Trigg Mining.

The proponent of the Lake Approach potash venture, Salt Lake Potash, entered receivership in October owing $170 million.


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