THE Federal Government has announced new financing measures for the rare earths and critical minerals sector – particularly those strategically important for defence end-use.
Projects which boost our ability to extract and process critical minerals in Australia will be eligible for financial support through Export Finance Australia (EFA), including the Defence Export Facility.
Projects will also have access dual funding through the EFA and the Northern Australia Infrastructure Facility (NAIF), as well as a dedicated project facilitation office within the Department of Industry.
Resources and Northern Australia Minister Matt Canavan said the financing options would secure the future of rare earth and critical mineral projects and would allow Australian companies to maximise access to existing government support to expedite new mineral processing activities.
“We are determined to develop our rare earth and critical mineral assets for the benefit of Australia and our technology-driven industries,” Mr Canavan said.
“By allowing proponents to secure financing through both EFA and the NAIF, we are enhancing opportunities for our critical mineral sector.
“This opens up new opportunities in trade and manufacturing, creating jobs of the future for thousands of Australians.”
A specialised new Critical Minerals Facilitation Office will be opened on January 1, 2020, to help proponents secure investment, financing and market access for critical mineral projects.
Mr Canavan, who is currently in the United States to discuss a US-Australia Critical Mineral Action Plan, said the new office would also support international supply chains.
“With the increasing global uptake of electric vehicles, smart phones and renewable energy, Australia is well placed to become an international powerhouse to supply critical minerals, and the Government is committed to developing world-leading projects which could help supply global markets,” he said.
Trade, Tourism and Investment Minister Simon Birmingham said the EFA would place a greater focus on critical minerals projects and related infrastructure, including projects that supply defence end-use applications where funding can be made available under the Defence Export Facility.
“Australia has world-leading reserves of critical minerals that present commercial opportunities for our businesses, as well as job creation potential in regional Australia,” Mr Birmingham said.
“With critical minerals essential to much of the innovation and technological development in industries such as defence, space, energy and advanced manufacturing, there are real opportunities for Australia to play a bigger role.”
Defence Minister Linda Reynolds reiterated the importance of critical minerals to defence capabilities and a wide range of advanced technology applications.
“These measures will play a vital role in supporting a secure, ethical and sustainable supply of critical minerals, and in doing that help deliver the capability that keeps Australians safe,” Ms Reynolds said.
The government will also commit $4.5m to fund critical minerals research by key Commonwealth scientific agencies.
