Critical minerals sector gets $21m boost as Albanese eyes WA — Capital Brief

Critical minerals sector gets $21m boost as Albanese eyes WA

6:33pm today

The news: Australia’s burgeoning critical minerals sector will receive a $21 million government boost, as Labor attempts to hold its gains in Western Australia at the next election.

The context: Prime Minister Anthony Albanese will make the announcement on Friday, the first of a three-day trip to WA.

Last week, during the final sitting period of the year, Labor passed its signature Future Made in Australia (FMIA) package after negotiations with the Greens ensured none of its funding would be routed to new coal or gas projects.

In a bid to propel the industry, Labor’s package included a critical minerals production tax incentive worth 10% of processing and refining costs.

Albanese will announce that the $21 million will be split across five critical minerals projects in WA, Queensland and South Australia.

The sector is viewed as a key industrial base in Australia’s transition away from fossil fuels, and the government said the grants will create around 400 jobs across the country.

WA will play a key role in the next federal election result, after Labor was swept to a slim majority by an unprecedented surge in the state in 2022. The government picked up four seats and an extra Senate spot in WA, while the Coalition lost six seats.

What they said: “A strong resources sector means a healthy economy and good, well paid local jobs,” Albanese said in a statement.

“This funding will support projects across the country, creating opportunities for direct jobs and through the supply chain.”

The source: Prime Minister’s press release