Business economics

Dear Consultant,
The Minister for Mines in Western Australia, the Honourable Bill Johnston, has requested a concise briefing due to this government’s concern with the financial status of the lithium industry, and the pollution the industry creates.
The Minister has seen the recent news coverage listed here:
• Crunch time for lithium sector, The Australian 
We request you advise the Minister on the following questions. For each answer, concisely summarize your main recommendation and the economic principle(s) supporting your recommendation. Please use simple research with appropriate citations when necessary, so that the Minister may read more if required. As this is a Ministerial Briefing, if you find that additional information is required for a precise answer please state what this is, and we will pursue this internally within the Ministry. Please provide each answer under a separate numbered point.
1. The recent entering of voluntary administration by Alita and has alarmed the Minister. It appears that many WA lithium mining companies are currently losing money due to low prices. The minister notes he has heard that the other countries’ governments have, when facing low prices for their resources, restricted output to improve the profitability of the industry. The Minister requests your advice: do you advise the WA government to intervene in the lithium market, restricting supply from WA mines in order to improve profitability for the lithium mines?
2. The next WA State election will occur in March 2021, and this requires preparing a budget projection for the State covering the following 5 years after the election. Being able to forecast large revenues over the post-election period will allow the government to claim it has balanced the budget. When resource companies earn large economic profits, taxes on this profit creates very substantial revenue for the WA government. When the industry earns normal levels of profit, the WA government earns very little tax revenue from the resource industry. The Minister has seen the news coverage of the current lithium surplus causing economic losses, and that the mining industry already anticipates the substantial rise in lithium demand expected in the mid-2020’s as electric car production increases. The Minister has also seen confidential information that the Chinese government, as part of its efforts to address climate change, might announce a requirement that all car sales be electric starting in Q1 2021, but will not announce this plan until Q1 2020. If this occurs, it would cause a very large additional rise in electric car production, and the lithium industry remains unaware of this potential announcement.
Please advise the minister on whether the WA government can project substantial revenue from taxing lithium mining profits when it creates its 2021 budget.
3. The WA Environmental Protection Agency reports that every tonne of rare-earth mining causes a large harm—and this harm is constant for each tonne—from water pollution that impacts nearby local communities. The EPA has proposed internalizing this externality through a tax applied to each unit of pollution, and this tax would equal the environmental damages of the pollution. The Minister for Mines is concerned about the impact of this proposed tax on the mining industry. In particular, the Minister has seen a recent presentation from the lithium mining industry where they claim that this environmental tax will not improve the environment, but instead simply cause industry to shift abroad. Please brief the Minister on this claim.
4. A source of the rarest rare earth elements has recently opened in WA! This mine is the first for this element in the world and there are no known other deposits of this element. The element can be used to make unique high-capacity batteries, but it also causes the same pollution externality costs on the nearby communities as lithium does. The EPA has proposed regulating it with the same tax on pollution as lithium. The Minister requests a briefing on whether this tax will increase economic surplus. (note— this example is fictional so you will not be able to research such a ‘rarest rare earth element.’)

Don't use plagiarized sources. Get Your Custom Essay on
Business economics
Just from $13/Page
Order Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Order your essay today and save 15% with the discount code DISCOUNT15