PERTH (miningweekly.com) – The Australian government on Wednesday unveiled a package of measures to unlock Australia’s critical minerals potential, including a A$200-million Accelerator grants program, A$50-million to support research and development and an updated industry strategy.

Prime Minister Scott Morrison said Australia’s resources companies were leading the world in developing new critical minerals markets.

“The world is becoming a more uncertain place and we want to secure Australia as a reliable partner for local and global businesses that need the critical minerals we have right here. We’ll dig them up right here. We’ll refine them right here. We’ll look to make the products that use them right here.

“As the global economy changes, there are exciting new growth opportunities emerging in areas such as rare earths and critical minerals that ultimately mean we can deliver a stronger economy for Australia and secure a stronger future.

“Critical minerals are used in more and more essential products. That means there are huge opportunities to backing the Australian critical minerals with programs like these, to be a partner whose products are high quality and consistent. A partner people can trust to deliver,” Morrison said.

Minister for Resources and Water Keith Pitt said the A$200-million Accelerator initiative will provide grants to strategically significant critical minerals projects at the early to mid-stage to fast-track them to market.

“By backing these important projects, we are also driving private sector investment to enhance Australia’s strong international reputation as a reliable supplier of the resources the world needs.”

Pitt said the 2022 Critical Minerals Strategy sets out to grow our critical minerals sector, expand downstream processing and help meet future global demand.

“The Strategy will cement Australia’s position as a leading producer of critical minerals, while contributing to our national security and economic prosperity. Developing and diversifying our resources sector strengthens our national economy, delivering jobs and growth opportunities, especially in regional Australia.”

The updated strategy builds on the first Critical Minerals Strategy published in 2019, and sets out a long-term plan to leverage growing global demand and develop a thriving and durable Australian critical minerals sector, which contributes to the national security and economic prosperity of Australia and the Indo-Pacific region.

“A strong economy means a strong future for Australia, and resources are a significant contributor to that. Our resources and energy exports hit a record high value of A$348.9-billion, and are projected to hit A$379-billion in 2021-22,” Pitt said.

“Australia is blessed with extraordinary reserves of the critical minerals needed by sectors including defence, aerospace, automotive, energy, telecommunications and agritech.

“We produce around half the world’s lithium and we are the second-largest producer of cobalt and the fourth-largest producer of rare earths.

“We have the potential to do so much more and we are taking action to grow Australia into a critical minerals powerhouse.”

Minister Pitt said Australia’s large critical minerals reserves, its technical expertise and track record as a reliable and responsible supplier, enable the sector to respond to increasing global market demand.

“We can also expand into downstream processing and embed Australia in global supply for technology ranging from mobile phones to fighter jets,” Pitt said.

He added that said the government has also committed A$50-million over three years to establish the virtual National Critical Minerals Research and Development Centre, which will draw together expertise from Commonwealth Scientific and Industrial Research Organisation (CSIRO), Geoscience Australia, and the Australian Nuclear Science and Technology Organisation.

“This Centre will build Australian capability in critical minerals processing, target technical bottlenecks in strategic supply chains, and drive breakthrough collaborative research,” Pitt said.

“The Centre’s projects will help unlock new sources of economically viable critical minerals, and diversify supply chains of strategic interest to Australia and our allies.”

The Association of Mining and Exploration Companies (Amec) has welcomed the government’s plans for the critical minerals sector.

“The Accelerator Grants program and the 2022 Critical Minerals Strategy will help to grow our critical minerals industry and expand downstream processing, enabling Australia to realise and retain greater value for our mineral resources,” Amec CEO Warren Pearce said.

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 Commonwealth Government targeting these opportunities with substantial new initiatives, backed by significant funding, within a clear national strategy.”

“Australia is a global leader and can build greater capacity in critical minerals processing by leveraging our vast natural resources, our industry’s capability and expertise, and our international reputation as a dependable trading partner.”

“These funds will help the development of new mines and processing facilities and demonstrates the commitment of Commonwealth government to advance our critical minerals industry, and will result in increased employment, increased local investment, and greater diversification of Australia’s economy. 

“Amec is pleased to have worked closely with the Commonwealth in developing the 2022 Critical Minerals Strategy, and to see this work deliver concrete initiatives which will help cement Australia’s position as a global critical resources powerhouse.”

The federal government on Wednesday also announced A$243-million in funding support to four critical mineral projects under its Modern Manufacturing Initiatives.

The four projects are expected to create over 3 400 jobs over time and cement Australia’s place in the rapidly growing critical minerals, electric vehicle and battery markets.