A critical minerals value-adding superpower
This report explores the potential for the nation to become a leader in mining and refining critical minerals. It highlights the economic, employment, and environmental benefits that could be unlocked by prioritising onshore processing, particularly against a backdrop of global decarbonisation.
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OVERVIEW
Key findings
This report details the potential for Australia to become a ‘critical minerals value-adding superpower’ in line with the growth of the global energy transition. The development of green technologies and the increasing demand for critical minerals, such as lithium, will provide opportunities for both onshore mining and processing, to maximise investment, create jobs and reduce the nation’s reliance on fossil fuels. Evidence from the report shows that Australia’s ‘enormous resources wealth’ outweighs Norway’s, and therefore it is of strategic importance to focus on this industry.
Public policy and regulatory drivers
This section explores government policy in Australia aimed at decarbonising the economy and investing in renewable technologies. Key regulatory and policy drivers, such as carbon pricing and the US Inflation Reduction Act, are assessed along with their potential impact on critical minerals mining and processing.
Investment in critical minerals
The report outlines the risks and opportunities in critical minerals mining and processing, highlighting the need for de-risking and long-term investment through public-private partnerships. The development of renewable energy infrastructure, capital investment in critical minerals mining, and the growth of off-take agreements are highlighted as key areas for growth in this sector. The report stresses the importance of co-investment and the need for Australia to become a leader in onshore processing.
Global supply chain economics
The economics of global critical minerals supply chains are discussed in this section, highlighting the risks of Australia’s current reliance on limited global suppliers. The report’s vision is to create a domestic supply chain and reduce the nation’s current ‘crippling reliance on fossil fuels’. By creating high-value end products in Australia, the nation can benefit commercially and also be a leader in the energy transition.
Australian-onshore critical minerals processing examples and opportunities
This section provides case studies and examples of how Australia is effectively executing onshore critical minerals processing, particularly in Western Australia. Rio Tinto’s “Full Value from Lithium” project and Neometals’ battery recycling project are two such examples. Highlighting the success of these projects, this section discusses the potential for future growth, employment opportunities and economic benefits that onshore processing could bring.
ESG issues facing critical mineral investments
The report discusses the key ESG issues faced by the critical minerals industry, including labour standards, water availability, and community engagement. It highlights the importance of ensuring that environmental, social, and governance standards are upheld across the supply chain, from mining to processing to end use. The report also emphasises the benefits to financial returns that are associated with ESG considerations in investment.
Recommendations
The report concludes by providing recommendations for improving critical minerals investment in Australia. These include expanding the scope of the Clean Energy Finance Corporation (CEFC) to incorporate critical minerals refining, creating partnerships between Australia and China, and ensuring the highest levels of ESG standards are upheld across the supply chain. It also suggests that Australia needs to act strategically and ambitiously, accelerating investment to become a world-class electrostate.