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Western Australia to grant rent cost relief for potash projects

In a move to support the potash industry in Western Australia, the state government is introducing a new class of mining lease for minerals found in brine, for which lower rent rates will apply.

The government will cut the rental rate for potash producers to A$2.32 per hectare for the first five years of the lease and A$4.64 afterward, compared to the existing A$18.70 per hectare. The current rate was found to be inappropriate for industrial minerals in brine because these operations require larger mining leases than other forms of mining, according to a Dec. 13 release.

The changes still require approval, but the new rates are expected to take effect in 2019.

"These changes will assist the development of a new industry in Western Australia, and create employment and community development opportunities, particularly in remote Aboriginal communities," Minister for Mines and Petroleum, Energy Bill Johnston said.