The Australian Federal Government's newly released Critical Minerals Strategy lays the foundation to elevate Australia as a major global player in the production of raw and processed critical minerals. With an emphasis on strengthening international energy supply chains and supporting a net-zero emissions agenda, the Strategy promises to augment Australia's economic growth while contributing to the worldwide clean energy transition.
The Minister for Resources and Northern Australia, Madeleine King, emphasises the potential of the country's mineral endowment to create job opportunities, attract investment, and develop downstream industries crucial to both the national economy and the global effort to reduce carbon emissions. The strategy involves a $500 million investment into critical mineral projects, spearheaded by the Northern Australia Infrastructure Facility.
The Strategy underscores six focus areas including environmental and social governance, infrastructure investment, First Nations engagement, international partnerships, strategic project development, and workforce skill enhancement. The goal is to foster a holistic and sustainable growth of Australia's critical minerals sector. With potential benefits to GDP projected at $71.2 billion by 2040, and a significant potential increase in employment opportunities, the Strategy presents a lucrative opportunity for national growth and international collaboration.
Key Highlights
Natural Resources Utilisation: The Strategy leverages Australia's rich mineral reserves, positioning it as a global leader in supplying critical minerals necessary for the clean energy transition.
Investment in Critical Minerals Projects: The Strategy earmarks $500m for new investment into critical minerals projects via the Northern Australia Infrastructure facility.
Job Creation: The Strategy is projected to create over 115,000 new jobs by 2040 through increased exports of critical minerals. If Australia develops downstream refining and processing capacity, this number could rise to 262,600.
Contribution to GDP: The Strategy could add $71.2bn to GDP by 2040 through increased exports of critical minerals, potentially rising to $133.5bn by 2050 with downstream refining and processing.
Six Focus Areas: The Strategy identifies six key areas for growth and development, including environmental and social governance, infrastructure investment, First Nations engagement, international partnerships, strategic project development, and workforce skill enhancement.
Australia's Global Role: Australia, being the world's largest producer of lithium and a leading producer of cobalt and rare earth elements, can significantly contribute to global low-emissions technologies and defense applications.
