Government unveils its new critical minerals strategy

The Federal Government has released its critical minerals strategy to help make the most of Australia’s significant critical minerals wealth. As one of the first policy decisions under the strategy, the government will target $500 million of new investment into critical minerals projects via the Northern Australia Infrastructure Facility. The strategy will also establish a process to update the critical minerals list. Resources Minister Madeleine King. Resources Minister Madeleine King said the strategy outlined the enormous opportunity to develop the sector and new downstream industries, which would support Australia’s economy and global efforts to lower emissions. “While the potential is great, so too are the challenges," she said. "The strategy makes it clear our natural minerals endowment provides a foot in the door, but we must do more to create Australian jobs and capitalise on this unique opportunity.” Independent modelling shows increasing exports of critical minerals and energy-transition minerals could create more than 115,000 new jobs and add $71.2 billion to GDP by 2040. However, the number of jobs could increase by 262,600, and the increase in GDP strengthen to $133.5 billion by 2040 if Australia builds downstream refining and processing capability and secures a greater share of trade and investment. The strategy highlights six focus areas: Developing strategically important projects, with targeted support Attracting investment and building international partnerships, to optimise trade and investment settings for priority technologies First Nations engagement and benefit sharing, to strengthen engagement and partnership with First Nations people and communities, and to improve equity and investment opportunities for First Nations interests Promoting Australia as a world leader in environmental and social governance (ESG) standards Unlocking investment in enabling infrastructure and services Growing a skilled workforce. Minerals Council of Australia chief executive officer Tania Constable said the strategy’s success would depend on regulatory policy settings that encouraged and supported investment into Australian mining, processing and manufacturing. "This includes stable taxation and economic policy frameworks, supported industry led fit-for-purpose ESG frameworks, workforce skills and capability development, and partnerships with Indigenous communities designed to support positive intergenerational wealth outcomes," she said. The $500 million inclusion from the Northern Australian Infrastructure Facility, in addition to the funding available from the National Reconstruction Fund and the Export Finance facility, is helpful. "However, careful policy consideration is needed to ensure these investments fully leverage Australia’s critical minerals potential. "The industry looks forward to working with the government to design and implement the detail of an integrated policy framework and deliver Australia’s potential as the global supplier of choice for the transition to net zero." She highlighted the 'staggering' growth in global demand for raw minerals and metals expected over coming decades. "Based on current mine sizes, by 2035 at least 384 new mines for graphite, lithium, nickel and cobalt alone are needed to provide the processed materials required to meet demand for electric vehicles," Ms Constable said. "By 2027, copper demand for manufacturing electric vehicles is expected to increase by 1.7 million tonnes. "These rapid changes to raw materials supply-demand outlooks is why the list of critical minerals and strategic materials must also be updated regularly and inform policy decisions."

Government unveils its new critical minerals strategy

Industry Queensland

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