Ground Breakers: Australia’s plan to more than double critical...

Ground Breakers: Australia’s plan to more than double critical minerals jobs

Josh Chiat | 20th June 2023

• Australia launches new Critical Minerals Strategy, eyeing over 250,000 jobs if we can head downstream
• At first glance policy looks heavy on words, light on funding
  

Canberra’s modelling reckons we can more than double the number of jobs created over the next two decades from investment in critical minerals for the energy transition by investing in downstream refining and processing, generating over 250,000 positions in the new green economy.

According to figures tabled with a new critical minerals strategy today, just exporting these commodities could deliver 115,000 new jobs and add $71.2 billion to GDP by 2040.

That would lift to 262,600 and $133.5b by 2040 if we take the lead of mining industry figures and ditch the ‘dig it and ship it’ mentality.

It comes with the delivery of a critical minerals strategy for 2023-2030, which will include as a first step a $500 million kitty for new investments into critical minerals projects via the Northern Australian Infrastructure Facility.

It’s a modest start, akin to the little steps they install in single storey homes to make the residents feel a bit fancier, like imagining you own a staircase.

It doesn’t set the world alight for miners, who could point to the roughly US$370 billion in support pledged for the development of critical minerals for electric vehicles and the like in the United States via the Inflation Reduction Act as evidence of the quantum other cabinets are willing to splurge to attract investment.

They would have been disappointed in a succession of federal and state budgets over the past month that delivered little new fiscal support to grow the industry, but it does provide a framework and indication it’s all on the Labor Government’s agenda.

Among the key pillars of the critical minerals strategy are to develop strategically important projects, attract investment and build international partnerships, First Nations engagement, promoting Australia as a world leader in ESG — which includes plans to hasten environmental approvals processes “while upholding robust environmental protections” — unlock external investment and ‘grow a skilled workforce.’

List update needed

The Albanese Government, whose resources minister Madeleine King was claimed last year that the previous Liberal-National Coalition’s critical minerals policies were not closely aligned with emissions reductions, is still planning to update the critical minerals list but hasn’t done so yet.

A number of metals mined in Australia and crucial to electric vehicles like tin, copper and nickel are not considered critical minerals despite being among those most sought after by explorers and customers, in part because of their geological diversity.

While little new funding has been committed, Association of Mining and Exploration Companies CEO Warren Pearce said the strategy provides an enduring framework for the sector, with as many as 81 projects worth $40 billion in the pipeline.

He says the government should look closely at ways to support minerals outside the list like nickel and copper.

“The world needs Australia to develop its critical minerals so that we can decarbonise,” Pearce said.

“As such, AMEC would like to see the government look more closely at copper and nickel, and other areas such as lithium and vanadium redox batteries, which are Australia’s opportunity to establish the full battery supply chain, from pit to battery and into our grid.”

“And while no new funding has been announced alongside the strategy, the recent Critical Minerals Compact between Australia and the United States offers the possibility for Australian companies to tap into Inflation Reduction Act incentives.”

“If this can be achieved, it could be a game-changer for the Australian critical minerals industry.”

Pearce also called for more efficient and effective regulatory approvals to remove roadblocks and time barriers to exploration and development.


***Note: This is an extract from an article from SH by Josh Chiat. I edited out the parts of the article relating to a specific lithium company. If you want to read the full article you can google it (as HC won't allow me to post a valid link).