Australia updates list of critical minerals and creates a new list of strategic materials
Western Australia’s Chamber of Minerals and Energy (CME) has raised a number of questions on the selection policies behind the Federal Government’s recent updates to its critical minerals list.
The government has made a number of significant additions and one reduction in its update of the list, which now includes fluorine, molybdenum, arsenic, selenium and tellurium.
Helium has been removed.
It has also revealed an initial list of commodities and plans to scope the creation of strategic critical minerals hubs around the country.
The CME has begun a separate evaluation of the two lists to determine their impact and value to industry.
Value still unclear
CME Chief executive Rebecca Tomkinson said updates to the critical minerals list – which identifies minerals required for global emissions reduction, advanced manufacturing and defence – were timely but the value proposition of being on the list was still unclear.
“CME has advocated to the Australian government for the inclusion of key minerals to the list so they are covered under the Australian Critical Minerals Strategy 2023-2030 and recognised for their role in achieving 2030 emissions reduction targets,” Ms Tomkinson said.
“The global scale of the energy transition means demand for WA’s resources is at a record high, but defining the value of being on the critical minerals list has been elusive.”
WA dominates critical minerals project
The CME says with more than half of Australia’s critical minerals projects in WA, it was seeking more detail on how the list will support the nation’s Critical Minerals Strategy.
“Clearer pathways for critical minerals projects to access financial incentives and investment support mechanisms would be a strong message of support from the government.”
Ms Tomkinson said that, while the full range of benefits of being on the list were yet to be detailed by the government, the creation of a secondary list for minerals of strategic importance may go some way to recognising the additional minerals required to support the energy transition.
“CME’s submission called for copper, nickel, bauxite-alumina, zinc and molybdenum to be included on the list. Molybdenum was among the five new minerals added to the primary list,” she said.
Ms Tomkinson said the CME was seeking more information on how the inclusion of copper, nickel, zinc and aluminium on the strategic minerals list would unlock benefits to industry and the energy transition.
“Whether a mineral is on the primary or secondary list, project proponents need certainty to make investment decisions,” she said.
“What we need now is a commitment to clarity and a material change in how the government looks at its own efficiencies to help the industry achieve energy transition targets.”
Extensive industry consultation
In announcing the 2023 edition of the list, Federal Minister for Resources and Northern Australia Madeleine King said the changes followed extensive consultations with industry, the public and states and territories.
“The updated critical minerals list and the new list of strategic materials will help the government focus on those commodities needed to create jobs, keep us secure and power our economy,” Minister King said.
“These minerals are critical to the greening of our economy and the defence of Australia and our allies.”
The Minister said the critical minerals list and strategic minerals list will be updated on an as-needed basis, as economic and geostrategic dynamics evolve.
Australian minerals vital
“Australian copper, nickel, aluminium, phosphorous, tin and zinc will be vital to the world’s energy transition, which is why for the first time ever we have articulated their economic and strategic importance by creating the new strategic minerals list,” said Ms King.
“Australia is well placed to meet increasing global demand for minerals, with large endowments, technical expertise and established resources supply chains,” she added.
The Minister said the government had removed helium from the critical minerals list to more closely align Australia’s with those of the nation’s international strategic partners.
It was recently revealed that a number of companies are in a race to develop or discover local helium projects after the only local producer of the industrial and medical gas was shut down due to a lack of local gas supplies.