The success of the Federal Government’s Critical Minerals Strategy hinges on implementing policies that encourage and support investment in Australian mining, processing, and manufacturing, says CCIWA.
The strategy outlines a vision to expand Australia’s critical minerals wealth, create jobs in mining and manufacturing, strengthen global clean energy supply chains, and support net zero emissions goals.
A commitment of $500 million in new investments for critical minerals projects will be made through the Northern Australia Infrastructure Facility.
Supporting Policy Key to Success
While praising the strategy’s clear framework, CCIWA emphasizes that industrial relations reforms and streamlined approvals are crucial to enhancing Australia’s appeal as a major producer of raw and processed critical minerals.
“Regarding industrial relations, the Government’s multi-employer bargaining reforms are yet to reveal their full impact on the economy,” notes CCIWA Chief Economist Aaron Morey.
“Moreover, the proposed ‘Same Job, Same Pay’ policy poses a significant risk to the resources sector. It is imperative to mitigate the adverse effects of this policy to foster the critical minerals sector.
“On approvals, WA’s State Government recognizes the threat posed by prolonged approval timelines for developing the critical minerals sector. It must now ensure timely approvals.
“At the federal level, the establishment of a national environmental protection agency and other changes to federal environmental laws could impede Western Australia’s progress in the critical minerals sector.”
Global Demand ‘Staggering’
Independent modeling indicates that increasing exports of critical minerals and energy-transition minerals could generate over 115,000 new jobs and contribute $71.2 billion to GDP by 2040.
According to the Federal Government, job numbers could rise by 262,600, and GDP could strengthen to $133.5 billion by 2040 if Australia enhances downstream refining and processing capabilities and secures a greater share of trade and investment.
Australia is the world’s largest producer of lithium, the third-largest producer of cobalt, and the fourth-largest producer of rare earths. Additionally, Australia produces significant amounts of metals such as aluminum, nickel, and copper, essential for low-emissions technology like electric vehicles, batteries, solar panels, and wind turbines.
Critical minerals are also vital for medical technologies and defense applications.
The Minerals Council of Australia (MCA) describes the anticipated global demand for raw minerals and metals as “staggering.”
“Based on current mine sizes, by 2035, at least 384 new mines for graphite, lithium, nickel, and cobalt alone will be needed to meet the processed materials demand for electric vehicles. By 2027, copper demand for manufacturing electric vehicles is expected to increase by 1.7 million tonnes,” says MCA CEO Tania Constable.
“These rapid changes to raw materials supply-demand outlooks underscore the necessity of regularly updating the list of critical minerals and strategic materials to inform policy decisions.”
Global Competition Intense
International competition for investment in critical minerals is already fierce, with incentives announced by the United States and European Union aimed at boosting investment to diversify supply chains and decarbonize their economies.
The Australian Government is also collaborating with industry and international partners to link Australian projects to emerging markets in the US, the United Kingdom, Japan, Korea, India, the EU, and its member states.
Federal Resources Minister Madeleine King says the strategy highlights significant opportunities for Australia to be a reliable exporter of energy and resources for a “clean energy future.”
“While the potential is immense, so are the challenges,” she says.
“The strategy clearly states that our natural minerals endowment provides an initial advantage, but we must do more to create Australian jobs and capitalize on this unique opportunity.”
CCIWA, in collaboration with the State Government, recently embarked on a trade mission to promote WA’s critical minerals potential in the United States.
Morey says the US trip underscores the intense competition Australia faces, necessitating a concerted effort to position the nation as an attractive investment destination.
“CCIWA urges the Government to follow up the release of its strategy by implementing supportive policies that create a favorable investment environment,” he says.
“By doing so, Australia can strengthen its position in the race to harness the substantial economic benefits offered by the critical minerals sector.”
*WA Investments is a collaboration between CCIWA and Invest and Trade WA.
