State royalty relief for WA lithium producers

The Western Australian Government (“WA”) has granted temporary royalty relief assistance for operating lithium mines as of 1 December 2020.

Galaxy confirms that a 50% royalty rebate will be applied to spodumene concentrate sold from its wholly owned spodumene mine, Mt Cattlin. This assistance will be provided for up to 12 months or until the average realised price of spodumene concentrate is greater than or equal to US$550/tonne (FOB) for a given quarter. At the conclusion of this assistance, the rebate will be repayable in full over a 2-year period. Currently, spodumene producers are required to pay a 5% state royalty based on revenue from spodumene concentrate sales.

Galaxy is appreciative of the State Government’s support which will assist in building resilience and sustainable growth in Western Australia’s lithium industry. During what has been a challenging period in the sector, this is a vital step in enabling WA to take advantage of growing global demand and preserve its leading position in the international market.