Industry reacts to election results

The Federal Government is focusing on critical mineral supply and the renewable energy transition following Australia’s federal election results.

As the country moves towards net zero operations, the Federal Government is looking to facilitate private sector investment to support a stronger and more resilient economy.

The Federal Government pledges to invest $22.7b into five key areas that include utilising natural resources and critical minerals.

The initiative notably provides a 10% production tax credit to incentivise domestic critical minerals processing at an estimated value of $7b over the next 11 years.

The Association of Mining and Exploration Companies (AMEC) chief executive Warren Pearce comments on the critical minerals production tax incentive (CMPTI).

“This will help level the playing field with global competitors and provide the certainty investors need to commit to major downstream processing projects in Australia,” he said.

Another notable commitment from the Federal Government geared towards supporting the resource sector is the establishment of a $1.2b critical minerals strategic reserve.

The proposal has elicited a divided response from key players in the resource sector, with many requesting a clearer plan on critical mineral exploration and expansion.

The Chamber of Minerals and Energy WA (CME) chief executive Rebecca Tomkinson says that a well-designed industrial policy could position WA as a trusted and stable supplier of critical minerals as the world rushes to diversify supply chains.

“The critical minerals strategic reserve is a potentially important avenue to unlock investment in Australia’s rare earth reserves, which are the third largest in the world,” she said.

“However, it is vital any plans for stockpiling contain safeguards against applying continued downward pressure to commodity prices that might impact the viability of existing or prospective Australian operations.”

There is also significant support for the proposal and many are confident that it is a crucial first step in securing the country’s critical mineral supply chain.

“The election promise to establish a $1.2b critical minerals strategic reserve will also be a crucial national investment in securing future supply chains, both for our domestic industries and key international allies,” said Mr Pearce.

Fortescue founder and executive chairman Dr Andrew Forrest welcomes the results and says that he looks forward to working with the Prime Minister to address the energy transition within the resource sector.

“In an era shaped by climate change, fragmentation and strategic competition, Australia has the chance to lead with clarity and resolve,” he said.

“The [Federal] Government’s commitments — including the Future Made in Australia plan, the Capacity Investment Scheme, the Hydrogen Production Tax Incentive and the Green Iron Fund — provide a strong foundation for a green energy future.”