Lithium royalty amendments now in place

Amendments to ensure all lithium producers are treated fairly
Date: Thursday, 09 April 2020

A new royalty arrangement for Western Australia’s lithium producers came into effect on 27 March 2020.

Following extensive industry consultation in 2019 and State Government approval, the amendments introduce a five per cent feedstock royalty rate for lithium hydroxide and lithium carbonate, where those are the first products sold and the feedstock is spodumene concentrate.

The new arrangement removes ambiguity in applying the appropriate royalty rate when lithium minerals are sold in different forms.

The Department of Mines, Industry Regulation and Safety Deputy Director General Phil Gorey said the amended lithium royalties should ensure lithium royalty rates are applied in a manner that is consistent with WA’s royalty principles and will ensure all lithium producers are treated fairly.

The amendments to Regulation 86 of the Mining Regulations 1981 were gazetted on 27 March 2020.