The Association of Mining and Exploration Companies has welcomed plans for a $75 million critical minerals demonstration facility in Townsville as helping cement Australia’s position as a global critical resources powerhouse.

The Queensland Government this week revealed its plans to locate the project at Cleveland Bay Industrial Park, near Townsville’s operating copper and zinc refineries.

It expands on previously announced plans for a $10 million common user vanadium processing facility to encompass a range of critical minerals like cobalt and rare earth elements.

AMEC chief executive officer Warren Pearce said the announcement, and additional injection in funding of more than seven times the original investment, recognised the importance of developing critical minerals projects to supply the demand from the rapidly growing renewable energy sector.

“AMEC has been a strong advocate for the minerals processing facility in Townsville so we are encouraged to see it coming to fruition and would like to thank the Queensland Government for its support for this project, which will help cement Australia’s position as a global critical resources powerhouse,” Mr Pearce said.

“AMEC, together with our Julia Creek vanadium members and other critical mineral explorers, are continuing to advocate for further support in the region, which includes infrastructure, legislative and assessment frameworks and incentives that will help channel further investment into Queensland’s exploration sector and its development.”

Premier Annastacia Palaszczuk made the announcement while visiting the Sun Metals green industrial precinct.

She highlighted critical minerals opportunities for North Queensland include mining and processing the minerals for vanadium, zinc bromine and iron flow batteries, cobalt and nickel used in lithium-ion batteries, high-purity alumina for LEDs, batteries and semiconductors, rare earth elements used in electronics and silicon for solar panels and semiconductors.