PERTH (miningweekly.com) – The Australian government on Thursday announced new financing measures to assist in building the rare earth and critical minerals sector, including those minerals used for defence.
A dedicated project facilitation office will be established within the Department of Industry, while critical mineral projects will also become eligible for financial support through Export Finance Australia (EFA) including the Defence Export Facility.
Furthermore, changes will also be made to allow projects to access dual funding through the EFA as well as the Northern Australia Infrastructure Facility (NAIF), while the government will also commit A$4.5-million to fund critical minerals research by key Commonwealth scientific agencies.
Resources Minister Matt Canavan said the new arrangements meant Australian companies would be able to maximise their access to existing government support to expedite new rare earth and critical mineral processing activities in Australia.
“We are determined to develop our rare earth and critical mineral assets for the benefit of Australia and our technology-driven industries. By allowing proponents to secure financing through both EFA and the NAIF, we are enhancing opportunities for our critical mineral sector. This opens up new opportunities in trade and manufacturing, creating jobs of the future for thousands of Australians.
“To further facilitate the sector’s growth, a specialised new Critical Minerals Facilitation Office will be opened on January 1, to help proponents secure investment, financing and market access for critical mineral projects. The office will also support international cooperation to help diversify critical minerals supply chains.
“With the increasing global uptake of electric vehicles, smart phones and renewable energy, Australia is well placed to become an international powerhouse to supply critical minerals, and the government is committed to developing world-leading projects which could help supply global markets.”
Minister for Trade, Tourism and Investment Simon Birmingham said EFA would now place a greater focus on critical minerals projects and related infrastructure, including projects that supply defence end-use applications where funding can be made available under the Defence Export Facility.
“Australia has world-leading reserves of critical minerals that present commercial opportunities for our businesses, as well as job creation potential in regional Australia,” Birmingham said.
“With critical minerals essential to much of the innovation and technological development in industries such as defence, space, energy and advanced manufacturing, there are real opportunities for Australia to play a bigger role.
“This intensive focus across government could provide many critical minerals projects with access to advice or opportunities that helps to kick-start their operations and create export outcomes.
“Austrade will work in conjunction with the critical minerals project facilitation office to continue its work seeking to promote investment in this sector to the world.”
The Minerals Council of Australia (MCA) has welcomed the government assistance, saying it would help to unlock Australia’s potential to become the world’s supplier of rare earths and high performance metals.
“Australia is well positioned to source and develop the critical minerals the world needs for faster, smaller and more powerful technology. We offer a stable and secure supply chain and our world leading mining practices are better for the environment compared to competitor countries,” said MCA CEO Tania Constable.
She said the financial support from the government would help to drive new investment to develop and process Australia’s critical mineral deposits.
“The government’s commitment to help industry extract and process critical minerals in Australia will drive economic growth and create new jobs. The MCA commends [the government] for this initiative.”
The Queensland Resources Council has also come out in support of the initiative, with CEO Ian Macfarlane saying that the critical mineral sector would play a strategic role for Australia in terms of defence industries, manufacturing, trade and regional development.