Budget initiatives to foster critical minerals growth

Critical minerals are at the centre of key Budget boons for the mining sector, including $57.1 million to develop critical minerals international partnerships. The Federal Government also plans to invest $21.2 million in Critical Minerals Office operations and $2.2 million for Treasury to establish data analysis capabilities to track foreign investment patterns and compliance in the critical minerals sector. AMEC chief executive officer Warren Pearce. Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce said that ensuring Australia could compete internationally in attracting critical minerals investment would be important, particularly in light of the $US 370 billion in tax breaks and grants through the United States Inflation Reduction Act 2022. He noted that the previously announced $15 billion National Reconstruction Fund included $1billion focused on ‘value adding in resources’. "How this money will be allocated awaits further policy development, and the finalisation of the government’s new critical minerals strategy,” he said. Critical to addressing workforce issues,was the government’s Migration Strategy - outlining a range of significant measures, with 70 per cent of 190,000 migration places in 2023/24 to be made up of skilled migrants, he said. This was combined with a major investment in training and a further 300,000 TAFE and vocational education training places to become fee free. “Each is needed to support industry’s skilled worker needs, however despite the ambitions of the National Housing Accord and the Housing Australia Future Fund, delivering the housing growth to accommodate the needs of new migrants looks especially challenging,” Mr Pearce said. Support for industries in face of energy transformation In addition to the boost for critical minerals, the Queensland Resources Council has welcomed the Budget commitment to the $400 million Industrial Transformation Stream to support the growth of new clean energy industries in regional areas, as well as innovative efforts to decarbonise existing industrial activities. Meanwhile the $600 million Safeguard Transformation Stream of the Powering the Regions Fund will support trade‑exposed facilities covered by the Safeguard Mechanism to reduce their on‑site emissions and boost their global competitiveness. A further $14.3 million has been allocated to partner with the Queensland Government, supporting research and development into reducing emissions in Australia’s energy resources sector. The Budget also funds the recently announced national Net Zero Authority. Funding to spark up gas strategy The government has also allocated $6.7 million to develop a Future Gas Strategy. Federal Resources Minister Madeleine King said this would support Australia’s energy system to reach 82 per cent renewables by 2030 and become cleaner, cheaper and more reliable while maintaining its international reputation as a trusted energy supplier to the region. "Gas plays an important part of Australia’s energy mix. The flexibility of gas as a firming fuel and a key manufacturing input will be required as the transition accelerates domestically, and in our region," she said. "Adequate gas supply also assists Australia and its international partners to process critical minerals and manufacture the wind turbines, batteries and other clean energy technologies that will play a critical role in reaching net zero emissions." Resources Minister Madeleine King. Ms King said the Albanese Government’s second Budget laid the foundations for a stronger future by taking further steps to help Australia capitalise on the transformation to cleaner, cheaper energy and promote energy security. "The road to net zero runs through the resources sector. After a decade of delay and inaction under the Liberals and Nationals, the Albanese Government is providing the leadership, investment and policy certainty the sector needs to thrive," she said. "We’re developing the critical minerals industry needs to make batteries and other green technologies - an integral part of our plan for Australia to become a renewable energy superpower. "Our vision is for an Australian resources sector that continues to grow national prosperity, supports jobs and opportunities and drives the global transformation to net zero." Hand up for hydrogen production The Budget includes $2 billion for Hydrogen Headstart, providing revenue support for large-scale renewable hydrogen projects through competitive hydrogen production contracts. Energy Minister Chris Bowen said these would help bridge the commercial gap for early projects and put Australia on course for up to a gigawatt of electrolyser capacity by 2030 through two to three flagship projects. "This investment will build critical domestic experience and expertise, and position Australia to take advantage of the immense jobs and investment potential of the technology," he said. The government has also funded $38.2 million for a 'guarantee of origin' scheme, which will certify renewable energy and track and verify emissions from clean energy products – in particular hydrogen. s. "Importantly, the government will also provide $5.6 million for further work before the end of 2023 on the best ways to leverage Australia’s competitive strengths in renewable energy, critical minerals and highly skilled workforce to accelerate our other clean industrial and manufacturing capabilities," Mr Bowen said.

Budget initiatives to foster critical minerals growth

Industry Queensland

Related News

Quick fire – industry news briefs

Fraser Institute rankings highlight global competition

Pybar tapped for new mine job as AIC gets ducks in a row

Get access to breaking mining news, now.