The Minerals Council of Australia (MCA) has called upon the major parties during the Australian election campaign to commit to a clear plan on critical mineral exploration and expansion for the sector.
In an opinion piece published on the MCA website, CEO, Tania Constable questioned the merits of the Critical Minerals Strategic Reserve and said the merits of such a proposal remain unclear.
Constable says the reserve proposal compared with the ‘opportunities to leverage our mining industry’ had to be evaluated.
“We must focus on the fundamentals that will give Australia back the edge over other mining nations.
“That means lower energy prices, a windback of draconian industrial relations laws, and faster environmental approval times.”
Last week, the Labor Government outlined its critical minerals strategy plan if re-elected, which revealed an investment into the sector via two new mechanisms; national offtake agreements and investment stockpiling.
As Mining.com.au previously reported, through national offtake agreements, the government will acquire agreed volumes of the minerals from commercial projects, while the selective stockpiling process involves specific critical minerals deemed necessary for national security.
However, the government’s proposal drew support from the Chamber of Minerals and Energy Western Australia (CMEWA) welcomed the Albanese government’s move as a sign of recognition for the state’s critical minerals sector.
CMEWA Chief Executive Rebecca Tomkinson said Australia’s rare earth reserves are the third largest globally — yet the nation currently accounts for 3% of the global production.
Rare earths are essential components in the magnets used in wind turbines and electric vehicles, as well as a wide range of specialist medical equipment and military hardware such as fighter jets and submarines.
Tomkinson noted that the Albanese government’s plan to offer voluntary offtake agreements allowing producers to lock-in stable and predictable revenue may support bringing projects to market via enhancing their attractiveness to investors.
“It is critical offtake agreements offer a fair price reflective of Australia’s high ESG standards,” Tomkinson says.
“It will also be important proposed settings are not finalised without close consultation with the industry to ensure the mechanism meets its objectives.”
Write to Aaliyah Rogan at Mining.com.au
Images: MCA
