Piedmont Lithium Ltd (ASX:PLL) is set to benefit from two important U.S. federal policy changes related to critical minerals and corporate taxes signed off on in late-2017.
The changes reinforce the strategic and financial benefits of the company’s unique location within the world-class Carolina Tin-Spodumene Belt in the U.S. state of North Carolina.
Trump signed off on two policy changes in December 2017
President Donald Trump signed an executive order on December 20, 2017 regarding a policy to reduce the country’s vulnerability to disruptions in the supply of critical minerals.
Lithium is one of the 23 critical mineral resources identified by the U.S.
Similarly, the Tax Cuts and Jobs Act that Trump signed on December 22, 2017 will reduce the U.S. corporate tax rate from 35% to 21% as well as provide other accounting benefits.
Initial scoping study due mid-year
Keith Phillips, chief executive, said: “Ours is one of the world’s best-located lithium projects, and these two important policy initiatives will further improve our strategic positioning.
“Among other benefits of the U.S. Administration’s renewed emphasis on the domestic production of critical materials, we expect a streamlining of the federal permitting process which may accelerate our transition from developer to producer.
“Furthermore, we aim to demonstrate low capital and operating costs when we complete our initial scoping study mid-year, and we will now have the benefit of lower corporate tax rates than are in effect in any other major lithium producing region, which should positively impact our project’s after-tax IRRs in a material way.”