Federal Government beefs up critical minerals backing

The Federal Government has announced a $2 billion expansion in critical minerals financing after the inaugural meeting of the Australia-United States Taskforce on Critical Minerals. Prime Minister Anthony Albanese said this would double the capacity of the Critical Minerals Facility to finance Australian critical minerals mining and processing projects. This was supplemented by other funds such as the National Reconstruction Fund, making almost $6 billion available to support value-adding investments in Australian resources going forward, he said. It comes as the market intervention created by the US Inflation Reduction Act (IRA) has drawn capital towards that nation. Mr Albanese noted the need for discussion on how the IRA, combined with the measures the Australian Government had put in place, could see increased investment in both nations. "I was asked in a press conference ... 'Will that see a vacuum of capital to the US?'. We want to make sure, and I think the US, if I can be so bold, agrees that we can have win-win here in terms of how we go forward." AMEC was quick to welcome the funding boost move, with chief executive officer Warren Pearce describing it as a significant expansion of Commonwealth support for developing critical minerals projects in Australia and pursuing local value-adding opportunities. “This further funding will help Australia deliver on its commitment to partner with the United States, in developing a strong and sustainable critical minerals supply chain,” Mr Pearce said. “Importantly, industry will be hoping to see a further broadening of the Australia – US Critical Minerals Compact to enable Australian projects and companies to receive incentives under the IRA. “This will likely require further commitments from the Australian Government to demonstrate its own ongoing commitment towards developing these projects. “This could take the form of Australian taxation incentives modelled on the IRA, grants programs, low-interest loans, equity investments, and fast-tracked approvals.” He noted that Australia’s explorers were currently experiencing a major slow-down in investment support, impacting their ability to find critical minerals. "Finding ways of getting more investment into exploration will be required, and exploration must become a major focus for the Australia and United States critical minerals partnership,” he said “Industry looks forward to further announcements in the future, however, the shared ambition and partnership approach demonstrated today by the Australian and United States governments is extremely positive.” Resources Minister Madeleine King said the Australia-United States Taskforce on Critical Minerals had this week agreed on priority areas of work and immediate actions such as joint supply chain mapping and deeper cooperation between science agencies on critical minerals. "The Australian Government is providing significant support to de-risk investment in Australia's critical minerals sector," she said. "The Critical Minerals Facility is a cornerstone of that support, providing finance to strategically significant projects which can crowd in private investment. "Coupled with our support for processing, we are well positioned to be a world-leading provider of critical minerals, including rare earths elements, and to support global efforts on clean energy transformation."

Federal Government beefs up critical minerals backing

Industry Queensland

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