Australian Government announces 2022 Critical Minerals Strategy
24 March 2022
24 March 2022
The growing global demand for critical minerals is an exciting opportunity for the mining sector to work with the energy, transport, aerospace, defence, material, automotive and telecommunications sectors to expand their business and secure investment.
The Australian government's 2022 Critical Minerals Strategy encourages stakeholders to ensure the continued growth of the resources sector through investing in the critical minerals sector.
The strategy recognises that "Australia needs to build its capabilities in downstream refining, manufacturing, and battery integration and services".
The Australian government recognises the challenges associated with supply chains for critical minerals, particularly relating to:
In response to the challenges, the Australian government proposes to make Australia a global critical minerals powerhouse by 2030 by de-risking projects, creating an enabling environment and strengthening international partnerships.
The 2022 Critical Minerals Strategy has put forward numerous initiatives to de-risk projects to decrease volatility and boost private investment.
Initiative | Explanation |
---|---|
Government investment | The Government commits to bringing projects to the market earlier, supporting projects to secure offtake agreements and giving investors confidence to achieve. |
Critical Minerals Facility | Established in 2021, the Critical Minerals Facility is tasked with helping projects aligned with the strategy to hit the ground running despite a hole in private finance. |
Critical Minerals Accelerator Initiative |
The Critical Minerals Accelerator Initiative supports early and mid-stage projects to overcome technical and market barriers by:
|
Modern Manufacturing Initiative |
The Modern Manufacturing Initiative supports mid-stage critical minerals projects by helping them pilot, demonstrate or scale up the techniques and processes they need to achieve commercial close. Some projects supported by the Modern Manufacturing Initiative include:
|
Attracting investment | The Australian government's lead trade and investment agency, Austrade, supports the critical mineral sector by delivering services to Australian critical mineral companies, including client engagement programs, targeted trade missions and connecting companies with trade partners and markets. |
Creating an enabling environment
The strategy commits to positively influencing the critical minerals sector by:
The Australian government recognises the need to secure strategic international relationships to promote Australia's critical minerals sector. The strategy the following five initiatives to strengthen international partnerships:
Click here to access a full copy of the 2022 Critical Minerals Strategy.
Authors: Ratha Nabanidham, Partner; Wyatt Cook-Revell, Graduate
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.