Scott Morrison will establish a loan facility to support Australia’s critical minerals sector with the aim of mining what he says is one of the world’s largest recoverable reserves of minerals used in advanced technology.
The Prime Minister issued a joint statement with Minister of Trade, Tourism and Investment Dan Tehan and Minister of Resources and Water Keith Pitt announcing the initiative on Tuesday. In the statement, Morrison said the fund would help start projects that would otherwise have difficulty getting started because of the “business dimensions of the critical minerals market.”
“We want to make sure Australian resource producers establish themselves so they can connect with others in our supply chains in a free and open Indo-Pacific,” the Prime Minister said.
In June, Mandarin reports new global resource statement produced by the Australian government to promote the local critical minerals sector to investors.
Cutting-edge technologies such as renewables, aerospace, defense, automotive and electric vehicles all depend on critical minerals for essential product components.
As the global demand for cleantech applications grows, the Australian government hopes the continued need for high-powered magnets and batteries uses essential minerals to function.
“Critical minerals are also a strategic area for governments as they are fundamental to the future energy economy,” said Morrison, referring to a projection that the critical minerals sector will grow exponentially over the next several decades.
“These projects also mean jobs in construction, infrastructure development and continuing roles for the mining sector.”
Export Finance Australia has been chosen to manage the $ 2 billion fund and will report to the Minister for Trade, Tourism and Investment on its progress. The installation will work in the National Interest Account for 10 years or until funding equivalent to $ 2 billion has been provided.
Tehan said investing in the sector to boost Australia’s image as a reliable supplier of critical materials would boost more jobs and local businesses.
“Australia’s essential minerals will help other countries in the Indo-Pacific and beyond to accelerate their industrial reforms and their transition to low-carbon technologies, which benefits Australia and our partners,” did he declare.
Commenting on the future of the critical minerals sector, Minister Pitt said the global lithium industry is expected to grow to $ 400 billion by 2030.
“Initiatives like this will mean Australia is well positioned to capture its market share,” he said.
According to Pitt, the new fund will make Australia a world leader in extracting and downstream processing of resources in demand. This is in addition to a government investment of $ 225 million in a ‘explore for the future fund‘to support the exploration of new resources across Australia. Establishing the local sector would be a boon for regional Australia, he added.
“Australia is a leader in sustainable and ethical mining practices, and this investment will ensure that we deliver the rare earths and other essential minerals that are essential to the supply chains of the new energy economy,” said Pitt .
The fund will be a flagship initiative of the federal government’s broader plans outlined in the critical minerals strategy that Pitt has been accused of leading.
Aerial surveys to collect geophysical data over North West Queensland