PERTH (miningweekly.com) – The resources sector has been quick to welcome election promises from the Coalition government, after Prime Minister Scott Morrison promised a A$50-million investment to boost the critical minerals supply chain in Western Australia, along with a host of energy-related investments.

The Prime Minister has also promised that no additional mining or carbon taxes would be introduced.

Morrison has announced that the government would invest A$50-million  to create a new business and research partnership with Western Australia’s Curtin University, focusing on the critical mineral supply chain that will create 1 300 jobs.

This project is the first under the government’s Trailblazer program and will see Curtin University partner with 33 business representatives, the University of Queensland and James Cook University. 

The focus will be on developing new technology that will help Australia to establish competitive advantage in key critical minerals supply chains, including nickel, cobalt and lithium.

Morrison said Curtin University was the first Australian university to receive funding through the Trailblazer program which is designed to focus Australia’s considerable research power on Australia’s National Manufacturing Priorities.

“Our economic plan backs in talented Australians to supercharge research and new ideas, working with business and industry leaders, to develop new products, new companies and more jobs to help build a strong economy and a stronger future,” he said.

“Employment in the mining industry grew by over 26 800 jobs, or 10.6%, over the past year and is expected to grow by 5.9% over the next five years, so it is important we back our best researchers and their ideas to ensure Australia’s mining sector is secure for the future.

“It’s no accident we’re announcing the first Trailblazer program in Western Australia, which is designed to push the boundaries, drive collaboration between universities and industry and challenge intellectual property arrangements that limit the dividend for our young, smart, savvy researchers.”

Curtin University and its industry partners have promised A$144-million in co-investment, matching public funding more than two-to-one.

Meanwhile, Morrison also announced that two new hydrogen hubs will be created in the Pilbara and Kwinana and will receive A$140-million, as well A$6-million to investigate two new development projects in Western Australia, creating more than 3 600 jobs, and A$67 million to develop two carbon capture and storage (CCS) hubs and support the appraisal of a third potential storage site in Western Australia.

Morrison said the government would also boost Western Australia’s critical minerals sector by investing almost A$8-million in two strategically critical projects, securing more jobs and important supply chain industries.

“Securing Western Australia’s economy is absolutely critical to locking in a stronger future for Australia and my government will continue to back the resource, mining, mineral and energy sector in Western Australia by creating more jobs and cutting red tape,” Morrison said.

“Western Australia is a world leader in critical minerals and these investments are just the beginning of our commitment to the sector, alongside our new hydrogen hubs, which backs in the state’s status as an economic powerhouse for the whole country.

“These investments will also turbocharge the development of Australia’s critical minerals and clean hydrogen industries, helping achieve the government’s vision to make Australia a global producer and exporter of clean hydrogen by 2030, while stimulating a surge in regions across Western Australia.”

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the government was investing more than A$1.5-billion to accelerate the growth of the nation’s clean hydrogen industry, along with more than A$300-million to support the development and deployment of carbon capture technologies.

“Kwinana and the Pilbara have long made Western Australia an energy and export powerhouse. Today’s announcement will embrace the competitive advantages of Western Australia, plentiful low-cost gas, great solar and wind potential, and a skilled workforce in resources and fertilizers, to grow another huge industry opportunity,” Taylor said. 

“These hydrogen projects in Western Australia will bring over A$413-million of new private and public investment into the regions and can create over 3 600 jobs initially when operational, but this is just the start of hydrogen’s potential benefits.

“Australia has a competitive advantage in CCS due to our abundant, world-class geological storage basins. Proving up low-cost CCS will be essential to reducing emissions from liquefied natural gas (LNG) production and building an early cost advantage in clean hydrogen production.

“Our commitments will create jobs, boost clean exports, and help to drive the production costs of hydrogen down, the heart of our technology-focused approach to reducing emissions,” said Taylor.

The Minerals Council of Australia (MCA) has welcomed the promised investment, acknowledging the Coalition’s promise today to provide stable tax settings, through no new taxes, supporting exploration activities, particularly for critical minerals, addressing skills shortages, attracting investment, streamlining environmental planning assessment and approvals processes and reducing regulatory barriers as a strong commitment to help mining continue to deliver for the nation.

“Improving enterprise bargaining, including by allowing greenfield agreements of up to six years for projects larger than A$500-million, is a sensible reform that will stimulate new investment and jobs across Australia,” said MCA CEO Tania Constable.

“The Resources Technology for Critical Minerals Trailblazer is a game changer for innovation-led safety, productivity and sustainability. This new approach to government-industry-university collaborative research is world-class and will make Australia’s resources sector stronger and more competitive.

“The Trailblazer involving Curtin University, James Cook University, University of Queensland and 33 industry partners will supercharge innovation by aligning technology research with industry problems and opportunities while keeping intellectual property and knowledge skills in Australia,” Constable added.

The Association of Mining and Exploration Companies (Amec) has also applauded the Coalition’s plans, with CEO Warren Pearce saying the plan is a very strong commitment to back the resources sector to continue to deliver for Australia, supporting the growth of the industry and the creation of thousands of new resource sector jobs.

“Importantly, this plan focuses on the future of the resources industry and the development of important and high value new industries such as the critical minerals supply chain, the emerging hydrogen industry, and the mitigation of sector emissions through CCS.

“The plan also commits to maintaining the strength of the industry, ensuring no new mining taxes are put in place, as well as leveraging Australia’s world-leading position as a reliable and responsible supplier of minerals,” said Pearce.

“Amec has been advocating to the Commonwealth to prioritise the development of a critical minerals industry here in Australia, and it is especially pleasing to see commitments targeting these opportunities with substantial new initiatives, backed by significant funding, within a clear national strategy.

“Our industry continues to seek bi-partisan commitments for supporting the continued strength and growth of Australia’s resources sector,” said Pearce.

“This means no new taxes and a commitment to stable policy and regulatory settings. Both are essential to ensure Australia remains a highly attractive destination for investment. The federal Coalition have outlined a clear and substantive plan to further develop our resources sector and attract new investment into Australia, backed by significant commitments.

“Federal Labor now needs to outline its broader plan for the Australian resources sector, and further articulate what they will do to grow Australia’s critical minerals industry,” said Pearce.

Meanwhile, the Chamber of Minerals and Energy for Western Australia has also welcomed the announcements, with director for policy and advocacy, Rob Carruthers saying it was encouraging to see Western Australian mining and resources being recognised for the contributions it delivers to economies and communities around the nation.

“Western Australia’s mining and resources sector is truly world-leading and it’s great to see that reflected in initiatives the federal government has identified it will embark on if re-elected. The plan underlines the significant contribution, or ‘chain’ as the Reserve Bank Governor refers to it, that directly links our sector’s export output and the nation’s economic prosperity.  
 

“Foremostly, the mining and resources industry welcomes the Prime Minister’s commitment to no new mining or carbon taxes, and stability of fuel tax arrangements, under a re-elected coalition government.