The recent Prime Minister’s announcement of a new national critical minerals strategy being developed in consultation with industry and community stakeholders is vital for the future, according to the Minerals Council of Australia.
MCA chief executive Tania Constable said: “Aboriginal and Torres Strait Islander peoples are a core partner in mining and industry is a major stakeholder in transforming economic and health disparity of Traditional Custodians and their communities.
“A comprehensive strategy and national approach is essential to ensuring the mining industry continues to drive Australia’s economic prosperity, as it has done for over a decade.
“This strategy is vital for both Australia and our trading partners aiming to reduce the carbon emissions to net-zero by 2050.
“Such goals will create a more resource-intensive global economy that requires substantial growth in the production of critical minerals including lithium, copper, rare earth elements and nickel.
“A recent Bank of America report shows global investment in mining needs to double from US$80 billion per annum currently to US$160 billion per annum in order to satisfy the growing demand for applications that range from renewable energy generation and storage to electric vehicles.
“The government’s new strategy must focus on the broad policy settings required for Australia to maximise its share of this investment opportunity.
“Australia has some of the world’s largest reserves of critical minerals, but will face significant competition for the capital required to develop these assets.
“Improving productivity lies at that heart of this challenge and urgent policy changes are needed.
“The development of Australia’s critical minerals industry is reliant on ensuring Australia remains an attractive investment destination.
“Government policies must establish domestic regulatory environment which delivers investment certainty by not adding unnecessary time and cost to project approvals.
“The MCA looks forward to working with the government on this strategy.”
The Chamber of Minerals and Energy of WA (CME) also welcomed the strategy’s announcement.
CME chief executive Rebecca Tomkinson said the opportunity to help fashion such an important strategy would be well received by the West Australian mining and resources sector.
Tomkinson added that the critical minerals strategy was of particularly relevance to WA, which is home to a wide variety of future-facing commodities, including many of the minerals necessary for battery production.
Western Australia already produces 57 per cent of the world’s lithium, along with battery-grade chemical products such as nickel sulfate, and there is more in the pipeline, including rare earths processing capacity.
Tomkinson continued: “Australia has a massive opportunity in the critical minerals space, to create jobs and attract investment that helps communities flourish, and to add value through mid and downstream processing.
“But taking full advantage of that opportunity requires collaboration and conversation across State borders, and for there to be a clear national vision for what Australia can achieve with its critical mineral wealth.
“I know our member companies will very much welcome the opportunity to have a ‘seat at the table’ and help mould a strategy that is going to plot the path for a key part of the mining and resources sector for decades to come.
“On behalf of the CME membership, I’d like to thank the Albanese Government for its willingness to listen to what’s important to industry and engage a wide range of stakeholders in formulating this strategy.”
CME has also welcomed the commitment in the Federal Budget of $50.5 million over four years to establish the Australian Critical Minerals Research and Development Hub, and a $50 million investment over three years in the Critical Minerals Development Program for competitive grants to support early and mid-stage projects.
