The Australian Government plans to introduce legislation when federal parliament resumes this year, to provide more powers to Export Finance Australia (EFA) to administer the nation’s Critical Minerals Strategic Reserve and enable its inception in H2 2026.
As Mining.com.au reported, the Critical Minerals Strategic Reserve (CMSR) is designed to strengthen Australia’s economic resilience and national security, and responds to growing global supply chain risks.
The Association of Mining and Exploration Companies (AMEC) has been engaging with the federal government as it contemplates design options for the CMSR.
CEO Warren Pearce says AMEC is awaiting further advice from the government on the remaining design options, including the financial mechanism it will need to implement to operationalise the CMSR.
“It is also vital the government is able to ensure state and federal permitting processes are appropriate, efficient, streamlined, and fit-for-purpose to enable rare earth, gallium, and antimony projects to proceed and enable the government’s objectives with the CMSR to be met,” Pearce says.
To support the government in its design considerations, AMEC commissioned Mandala Consulting to work with 10 rare earth developers, as well as offer a framework to optimise a CMSR. The framework aims to ensure commercial bankability, limited tax payer fiscal exposure, and consistency with the government’s policy objectives.
Pearce says the recommended model – Rare Earths Production Scheme – centres around rare earths and provides a mechanism that meets the objectives of government, helps support the growth of rare earths projects in Australia, while also minimising risks to taxpayers.
AMEC is an industry association representing more than 575 member companies from around Australia. The association’s members are explorers, emerging miners, producers, and a wide range of businesses and service providers working in and for the industry.
Mining.com.au is a member company of AMEC.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
