PERTH (miningweekly.com) – The Australian resources sector on Friday welcomed the federal government’s National Critical Minerals Strategy, which is being developed in consultation with industry and community stakeholders, including traditional owners.

Prime Minister Anthony Albanese said that the strategy would complement other government initiatives including the National Battery Strategy and the Electric Vehicle Strategy.

He said that these initiatives will expand Australia’s mining science technology capability, diversify supply chains, create local jobs and help drive growth in the critical minerals sector including rare earths, a key component of low-emissions technologies, such as batteries, electric vehicles and solar panels.

“Australia’s natural resources have powered our nation and we are committed to supporting the critical minerals sector and new clean technologies to reach our target of net zero, and make our nation an economic powerhouse with a clean energy future,” Albanese said.

“Today’s new initiatives will ensure we can create and support local jobs, diversify global supply chains and meet the growing demand for batteries, electric vehicles and clean energy technology.”

Additionally, next week’s Budget will include A$50.5-million over four years to establish the Australian Critical Minerals Research and Development Hub to help unlock Australia’s critical minerals potential.

The Hub will combine expertise from Geoscience Australia, the Commonwealth Scientifica and Industrial Research Organisation (CSIRO) and the Australian Nuclear Science and Technology Organisation to work with Australian industry to address technical challenges and support international research and development collaborations.

The government will also allocate A$50-million over three years to the Critical Minerals Development Program for competitive grants to support early and mid-stage critical minerals projects, building on the A$50-million recently committed to six key projects across Australia.

The Chamber of Minerals and Energy (CME) of Western Australia has welcomed the development of a National Critical Minerals Strategy, with CEO Rebecca Tomkinson saying the opportunity to help fashion the strategy was well received by the Western Australian mining and resources sector.

Tomkinson said the critical minerals strategy was of particularly relevance to Western Australia, which is home to a wide variety of future-facing commodities, including many of the minerals necessary for battery production. 

“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,” Tomkinson said.

“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,” she said.

Association of Mining and Exploration Companies (Amec) CEO Warren Pearce said the new strategy was an opportunity to develop a clear path to accelerate the growth of critical minerals projects across Australia, to meet its energy transition targets.

“Locking A$50.5-million into the Budget over four years to establish the Australian Critical Minerals Research and Development Hub, combining expertise from Geoscience Australia, CSIRO and the Australian Nuclear Science and Technology Organisation is an investment into the future.”

“The Hub’s expertise will fast-track the research and innovation needed to continually find new ways of processing our natural resources,” said Pearce.

“A further A$50-million will be allocated over three years to the Critical Minerals Development Program for competitive grants to support early and mid-stage critical minerals projects. This is in addition to the A$50-million already committed to six projects across Australia, and will be vital to accelerating the development of emerging projects across the nation.

“Together with the government’s National Battery Strategy and Electric Vehicle Strategy, Australia’s wide range of critical minerals resource projects now have a clear framework and future vision.”

Pearce said that the announcement of the Critical Minerals Strategy and commitments to research and projects, would help to grow Australia’s critical minerals industry and expand downstream processing, enabling Australia to realise and retain greater value for its mineral resources.

The International Energy Agency projects mineral demand for use in electric vehicles and battery storage could grow at least 30 times to 2040.

Australia is the world’s largest lithium producer, and latest figures forecast the value of lithium exports are due to increase more than 10 fold over two years, from $1.1 billion in 2020/21 to almost A$14-billion in 2022/23, with continued growth over future years.

“These minerals will be critical to Australia achieving net zero emissions, and to helping the rest of the world make that transition as well,” Albanese said on Friday.

The development of a battery industry could contribute A$7.4-billion annually to Australia’s economy and support 34 700 jobs by 2030.