Latest news with #CriticalMineralsStrategicReserve
Yahoo
09-06-2025
- Business
- Yahoo
As Albanese returns, what next for Australia's mining and minerals?
When Anthony Albanese, leader of Australia's Labor Party, secured his second term as prime minister in May of this year – the first Labor leader to do so since Bob Hawke, who served three terms from 1983 to 1991 – world leaders were quick to congratulate him. But did Australia's mining industry, a sector critical to the nation's economy, do the same? Just a few days before the election, Albanese made his intentions around critical minerals clear via a statement on his website. If elected, his government promised to 'pursue Australia's national interest and boost our economic resilience by establishing a Critical Minerals Strategic Reserve'. 'In a time of global uncertainty, Australia will be stronger and safer by developing our critical national assets to create economic opportunity and resilience,' stated Albanese. 'I will ensure that Australia continues to produce and benefit from the resources that are essential to our national interest.' The strategic reserve will see the federal government commit to entering contracts to purchase, or obtain options over, key critical minerals, which will likely give Australia's national government some leverage in relation to critical minerals as geopolitical tensions increase. The government will make an initial investment of A$1.2bn ($767m), including through a A$1bn increase in the existing Critical Minerals Facility established in 2021, taking the total investment in the facility to A$5bn. Australia is home to some of the largest critical mineral deposits on Earth. In 2024, government agency Geoscience Australia was pledged A$566m by the previous Albanese government to map out the nations' critical minerals over the next ten years and identify a strategy to develop them. Identified as crucial to developing infrastructure in everything from renewable energy to defence and communications, these critical materials are already believed to be abundant in Australia. However, Geoscience figures suggest more than 80% of the country remains under-explored. As such, the country 'is uniquely placed to meet the needs of increasing global and domestic demand, while the size and sophistication of our mining industry allows us to take maximum advantage of these resources', Albanese says. The reserve will create two new mechanisms: national offtake agreements, with the government taking agreed volumes via a voluntary contract; and selective stockpiling, with the government establishing stockpiles in Australia of certain key critical minerals. The reserve 'will generate cash flow from sales of offtake on global markets and to key partners [and] accumulate stockpiles of priority minerals when warranted by market conditions and strategic considerations, but it is anticipated that these will be modest and time-limited in most cases'. Resources Minister Madeleine King also says that the reserve, 'combined with production tax credits and the expansion of the Critical Minerals Facility, shows the Albanese government is taking the development of an Australian critical minerals industry seriously'. King, who is also Minister for Northern Australia, was re-appointed to the role on 13 May 2025. The Critical Minerals Production Tax Incentive (CMPTI) – passed into law in early 2025 – is a scheme intended to support the critical minerals industry and promote downstream processing in Australia. It offers a refundable tax credit on 10% of eligible costs associated with the processing of certain critical minerals between July 2027 and the end of June 2040. The Australian Government has two lists of minerals that are important for the nation's modern technologies, economies and national security: a critical minerals list containing 31 substances including cobalt and lithium; and a strategic materials list containing aluminium, copper, phosphorus, tin and zinc. The minerals on these lists support Australia's 'transition to net-zero emissions, advanced manufacturing, defence technologies and capabilities, and broader strategic applications', according to its Department of Industry, Science and Resources. Albanese's Government will now be able to carry on with its overarching Future Made in Australia policy – essentially an attempt to enhance the benefits of net-zero and energy transition policies. The creation of the critical reserve is central to that, along with a A$750m commitment to develop new low-emissions technology, and A$1bn to boost green iron manufacturing and supply chains. A statement from Andrew Forrest, executive chairman and founder, Fortescue, claims the return of Albanese 'sends a clear and unequivocal message: Australians will back and support policies that recognise the economic opportunities which come from acting on the existential threat of climate change'. Forrest continues that the government's commitments, 'including the Future Made in Australia plan, the Capacity Investment Scheme, the Hydrogen Production Tax Incentive and the Green Iron Fund, provide a strong foundation for a green energy future'. Australia is likely trying to position itself as a green iron manufacturing powerhouse, with the A$1bn fund boosting green iron manufacturing and supply and helping to unlock substantial levels of private investment. 'Green iron can be the biggest industry Australia has ever built,' adds Forrest, so 'let's start in the Pilbara this decade, with investment, markets and skills'. Pilbara is home to Fortescue's Green Metal Project, which is expected to produce more than 1,500 tonnes per annum of green metal, with first production anticipated in 2025, according to the company's website. The plant will use green hydrogen in a reduction furnace to convert iron ore into sponge iron, revealed the company. Soroush Basirat, energy finance analyst, global steel at the Institute for Energy Economics and Financial Analysis, was also hopeful Albanese would help the growth of Australia's high-grade magnetite mining sector, as a key feedstock for green iron production. 'The industry remains focused on hematite mining due to its higher profit margins, but this approach limits flexibility,' Basirat told Mining Technology. 'A transition to magnetite mining – better suited for producing high-grade ore – has yet to gain traction. Given the long lead times for magnetite projects (often a decade to become operational and deliver stable output), government support is essential to accelerate development.' Of Australia's total economic demonstrated resources of iron ore, just over 58.29 billion tonnes (bt), some 24.25bt is magnetite ore, according to 2023 research from Australia Minerals, a collaboration of Australia's federal, state and Northern Territory Government geoscience agencies. The research added that the 'projected demand for high-grade iron ore products has provided momentum for the recent development of magnetite deposits, such as the Iron Road Central Eyre project in South Australia and Fortescue Metals Group's Iron Bridge project in Western Australia. Basirat continues that while the government 'is backing green iron initiatives, significantly more effort is needed to establish even a single low-emissions ironmaking facility in Australia'. To remain competitive in the evolving global iron ore market, Australia must also act swiftly to diversify beyond hematite and invest in the future of high-grade, low-emissions iron production. 'Without action, Australia risks losing its competitive edge. Emerging competitors such as the Simandou [iron ore] mine in [Guinea], Africa, are set to enter the market and could claim a significant share by the end of the decade, challenging Australia's dominance, which has been largely built on lower-grade ores,' Basirat adds. There is an 'urgent need' to shift toward producing high-grade iron ore that is suitable for the direct reduced iron pathway, says Basirat, noting that this process is 'critical as steelmakers transition to more environmentally friendly technologies such as electric arc furnaces to replace the traditional, coal-based blast furnace-basic oxygen furnace method'. Australia's minerals sector is central to the nation's prosperity, says an early May statement from the Mineral Council of Australia (MCA), 'supporting over 1.2 million jobs, contributing more than A$455bn in export earnings last year, and playing a vital role in the global energy transition through the supply of critical minerals'. Tania Constable, CEO, MCA, added that she hopes the new government 'will place investment at the heart of its economic growth strategy [with a] strong focus on skills, training and workforce, ensuring that Australia has the capability and talent it needs to meet growing demand for critical minerals and resources'. Some key aspects of the policy are tax incentives for processing of critical minerals and production of hydrogen, as well as resources to assess the dangers of foreign investment in critical infrastructure, critical minerals and critical technology. The Association of Mining and Exploration Companies' CEO, Warren Pearce, welcomed the re-election, and publicly stated that his organisation is 'ready and willing to work constructively with the returned Albanese government to deliver the minerals and metals critical to Australia's prosperity and the global energy transition'. Pearce added that it is now time 'for action on key policy initiatives that will support long-term investment and drive Australia's international competitiveness, especially in critical minerals'. 'The exploration sector is struggling,' said Pearce, 'with investment extremely hard to come by, and this crucial cog in the wheel of mining industry needs clarity around the continuation of Junior Minerals Exploration Incentive (JMEI)'. The JMEI encourages investment in small minerals exploration companies that carry out greenfields mineral exploration in Australia, allowing eligible companies to generate tax credits by choosing to give up a portion of their losses from greenfields mineral exploration expenditure. Initially introduced in 2017, JMEI is currently funded until the end of June 2025. Rebecca Tomkinson, CEO, Chamber of Minerals and Energy Western Australia, sees the re-election of Albanese as a chance to streamline environmental regulations, with reform of 'environmental law long overdue, but any change must [offer] improving outcomes for both the environment and for business'. "As Albanese returns, what next for Australia's mining and minerals? " was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Straits Times
24-04-2025
- Business
- Straits Times
Australia plans critical minerals reserve to reduce global reliance on China
Australia has some of the world's largest deposits of critical minerals, including lithium, cobalt and rare earths. PHOTO: REUTERS – Australian Prime Minister Anthony Albanese on April 24 announced a A$1.2 billion (S$1 billion) plan to buy and stockpile some of the country's vast deposits of critical minerals to try to reduce the global dependence on supplies from China, which dominates the market. Promising to establish a strategic reserve of 31 critical minerals if he wins an election on May 3, Mr Albanese said the plan would help to safeguard supplies at a time of growing global tensions. 'In a time of global uncertainty, Australia will be stronger and safer by developing our critical national assets to create economic opportunity, but also to build resilience,' Mr Albanese told reporters. Mr Albanese also signalled that the reserve could be a bargaining chip in negotiations with US President Donald Trump over tariffs. Australia is a close ally of the US but was unable to secure a reprieve from Mr Trump's steel and aluminium tariffs and a 10 per cent general tariff. 'What we do as friends is be prepared to engage in a constructive way and that is what I intend to do with the United States,' Mr Albanese said. Australia has some of the world's largest deposits of critical minerals, including lithium, cobalt and rare earths, that are used to produce electric vehicle batteries, smartphones, solar panels, wind turbines, weapons and medical devices. Some of the minerals are also essential to the defence and aviation industries. But the bulk of critical mineral processing occurs in China, which currently produces about 70 per cent of critical minerals and 90 per cent of rare earths. Beijing has at times blocked exports due to geopolitical disputes, including recent restrictions imposed in response to Mr Trump's tariffs. Mr Albanese said his ruling Labor party, if re-elected, will create a Critical Minerals Strategic Reserve that will involve buying agreed volumes of critical minerals from commercial projects, or establishing an option to buy them at a given price. In addition, the Government will create domestic stockpiles of key minerals. The reserve, which would become operational in the second half of 2026, will involve 31 critical minerals. Australia will sell some of the minerals on global markets and to key international partners, though the identity of these partners has not yet been confirmed. The government said in a plan released on April 24 that the reserve will focus on minerals that are 'most important for Australia's national security and the security of our key partners'. Asked about China's domination of critical minerals processing, Australia's Minister for Resources, Ms Madeleine King, told Sky News: 'Yes, that's exactly right, and that's the monopoly of supply chain that we're trying to break here in Australia.' Despite Australia's vast supplies of critical minerals, it has only limited processing capacity. Mr Albanese has contributed A$475 million to the development of a rare earths refinery operated by mining firm Iluka Resources in Western Australia. Australia also produces minerals such as cobalt and nickel. But firms in Australia and elsewhere have long accused China of using its global dominance of critical minerals supplies to control output and prices to ward off competitors An expert on Australia's critical minerals policies, Dr John Coyne, the director of national security p rogrammes at the Australian Strategic Policy Institute, told The Straits Times the proposed reserve could help to ease the global dependence on China. He said such dependence is risky because it enables China to influence prices and because supplies could suddenly be interrupted due to geopolitical tensions or internal strife in China or natural disasters. Describing the reserve as 'an excellent first step', Dr Coyne said its success ultimately depends on whether Australia can find other like-minded partners with greater processing capability and potential. Such partners, he said, could include Japan, South Korea, India, the European Union and the United States. 'The stockpile will have no impact if China is still needed to process it,' he said. 'To truly lead to the benefits, you need other countries involved.' Analysts such as Dr Coyne, as well as business groups such as Western Australia's Chamber of Minerals and Energy, said Labor's plan to acquire and seek options to buy critical minerals could generate much-needed investment in the sector. Mining firms have often been wary of developing critical minerals projects due to the wild fluctuations in prices. The head of the Association of Mining and Exploration Companies, Mr Warren Pearce, said in a statement the plan will help Australia to 'leverage our position as a major critical minerals player in the global market'. 'This is a positive step forward that... will provide a major boost for the developing critical minerals industry in Australia,' he said. 'It will provide support to the private sector and assist international investors and partners with the upfront capital costs of new projects.' The government said it will consult with states and companies to develop the reserve and determine the 31 minerals to be included. Opposition leader Peter Dutton, who leads the Liberal-National Coalition and trails in opinion polls, did not endorse Labor's plan but said on April 24 he was open to developing a reserve if elected and would work on it with partners such as the US and Japan. Jonathan Pearlman writes about Australia and the Pacific for The Straits Times. Based in Sydney, he explains matters on Australia and the Pacific to readers outside the Oceania region. Join ST's Telegram channel and get the latest breaking news delivered to you.
West Australian
23-04-2025
- Health
- West Australian
Australian politics and news live: Albanese in WA to announce $1.2b mineral stockpile at leadership forum
Scroll down for all the latest news and views. Labor will dedicate an extra $32 million into men's health initiatives if re-elected, focusing on grassroots organisations. Funded programs include helping men who struggle with mental health and fatherhood, and those foregoing health support due to stereotypes. From Men's Shed to Movember, Health Minister Mark Butler said 'too many blokes put off prioritising their health'. Mr Butler highlighted Labor's $11.3 million pledge to Movember, saying it would provide men's healthcare training to more than 60,000 health care workers, based on the existing Men in Mind program. 'This investment by Labor into Movember's training will mean doctors and nurses have the right tools to support men,' he said. Read the full story here. Prime Minister Anthony Albanese will spend at least $1.2 billion buying critical minerals for a new stockpile which would then be offered up for sale to key global partners in a move aimed at breaking up China's global dominance of the sector. Mr Albanese will use his address to The West Australian's Leadership Matters forum on Thursday to detail the new Critical Minerals Strategic Reserve he wants to set up as part of Australia's response to US president Donald Trump's 'reciprocal' tariffs. The reserve and priority access to critical minerals have formed part of Australia's discussions with the US over recent weeks. Mr Albanese said the move would give greater industry certainty when getting projects off the ground and would also boost Australia's standing as a trusted and reliable trading partner. 'Throughout this campaign, we've all been reminded that this is a period of significant global uncertainty. That is the reality our nation has had to manage for the past few years — not just the last few weeks,' he is expected to say in his address. Read Katina Curtis's full story here. One the eve of Anzac Day Anthony Albanese is in WA to attend The West Australian Leadership Matters forum and Peter Dutton is out and about pushing his latest policies, including an injection of funds for domestic violence support. Stay up to date with all the latest news and views from the campaign trail right here.
News.com.au
23-04-2025
- Business
- News.com.au
Anthony Albanese's $1.2bn pledge amid Donald Trump's tariff threat
The Albanese government will invest $1.2bn into Australia's critical minerals supply, which will likely play a major role in negotiating a tariff carveout from the Trump administration. This comes as Australian steel and aluminium imports have been hit with a 25 per cent levy, with other imports slapped with a 10 per cent tariff. Anthony Albanese will on Thursday announce plans to create a Critical Minerals Strategic Reserve to secure quantities of the select minerals that will be made available for domestic projects and select international partners. If re-elected, $1.2bn will be used to secure the initial resource stockpile, and purchases will be made according to strategic and market-conditions. These include elements like titanium, lithium, nickel and cobalt, which are essential for the production of mobile phones, computer chips, electric vehicles, solar panels and defence technologies. Altogether Australia has listed 31 critical minerals, and holds at least 4 per cent of the world's rare earth reserves. The Reserve is expected to be in operation from the second half of 2026, and a taskforce will be created to consult on the design and function of the reserve. Although the Prime Minister did not directly refer to the Trump administration in the announcement, he said the $1.2bn investment into Australia's critical mineral industry would help safeguard 'critical national assets' in 'time of global uncertainty'. 'The Strategic Reserve will mean Government has the power to purchase, own and sell critical minerals found here in Australia,' he said. 'It will mean we can deal with trade and market disruptions from a position of strength. Because Australia will be able to call on an internationally-significant quantity of resources in global demand. 'This will be a national asset and our Government will use it to advance Australia's national interest.' Resources Minister Catherine King said the boost to the industry would also drive industry and jobs in Western Australia, where Mr Albanese will spend Thursday campaigning. 'Critical minerals and rare earths and essential not only to reducing emissions but also for our security and the security of our key partners,' she said. 'While we will continue to supply the world with critical minerals, it's also important that Australia has access to the critical minerals and rare earths we need for a Future Made in Australia. 'The Strategic Reserve, combined with Production Tax Credits and the expansion of the Critical Minerals Facility, shows the Albanese Government is taking the development of an Australian critical minerals industry seriously.'
The Australian
23-04-2025
- Business
- The Australian
Anthony Albanese's $1.2bn pledge amid Donald Trump's tariff threat
The Albanese government will invest $1.2bn into Australia's critical minerals supply, which will likely play a major role in negotiating a tariff carveout from the Trump administration. This comes as Australian steel and aluminium imports have been hit with a 25 per cent levy, with other imports slapped with a 10 per cent tariff. Anthony Albanese will on Thursday announce plans to create a Critical Minerals Strategic Reserve to secure quantities of the select minerals that will be made available for domestic projects and select international partners. Anthony Albanese will make the pledge on Thursday. Picture: Mark Stewart / NewsWire If re-elected, $1.2bn will be used to secure the initial resource stockpile, and purchases will be made according to strategic and market-conditions. These include elements like titanium, lithium, nickel and cobalt, which are essential for the production of mobile phones, computer chips, electric vehicles, solar panels and defence technologies. Altogether Australia has listed 31 critical minerals, and holds at least 4 per cent of the world's rare earth reserves. The Reserve is expected to be in operation from the second half of 2026, and a taskforce will be created to consult on the design and function of the reserve. Although the Prime Minister did not directly refer to the Trump administration in the announcement, he said the $1.2bn investment into Australia's critical mineral industry would help safeguard 'critical national assets' in 'time of global uncertainty'. 'The Strategic Reserve will mean Government has the power to purchase, own and sell critical minerals found here in Australia,' he said. It comes amid Donald Trump's tariff announcement. (Photo by Brendan SMIALOWSKI / AFP) 'It will mean we can deal with trade and market disruptions from a position of strength. Because Australia will be able to call on an internationally-significant quantity of resources in global demand. 'This will be a national asset and our Government will use it to advance Australia's national interest.' Resources Minister Catherine King said the boost to the industry would also drive industry and jobs in Western Australia, where Mr Albanese will spend Thursday campaigning. 'Critical minerals and rare earths and essential not only to reducing emissions but also for our security and the security of our key partners,' she said. 'While we will continue to supply the world with critical minerals, it's also important that Australia has access to the critical minerals and rare earths we need for a Future Made in Australia. 'The Strategic Reserve, combined with Production Tax Credits and the expansion of the Critical Minerals Facility, shows the Albanese Government is taking the development of an Australian critical minerals industry seriously.' Jessica Wang NewsWire Federal Politics Reporter Jessica Wang is a federal politics reporter for NewsWire based in the Canberra Press Gallery. She previously covered NSW state politics for the Wire and has also worked at and Mamamia covering breaking news, entertainment, and lifestyle. @imjesswang_ Jessica Wang
