Mining Venture Draws $200 Million in Tax Incentives and Red Flags (1)

A long-shot Nebraska mining venture that scored $200 million in state tax credits is emerging as a prime example of a flawed business incentive program that critics say lacks transparency and is marred by conflicts of interest.

Critics of the Nebraska Advantage tax credit program are expressing misgivings about 10 years of tax abatements granted to NioCorp Developments Ltd., which hopes to mine niobium, scandium and titanium—rare elements crucial for the production of lighter, stronger and corrosion-resistant forms of alloy steel. Centennial, Colo.-based NioCorp announced the generous tax deal in October.

NioCorp executives have defended the $1.1 billion project, ...