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【Ferro-alloys.com】: The Federal Government has announced plans to establish a Critical Minerals Strategic Reserve if re-elected, with plans to invest $1.2 billion into the initiative.

The Federal Government is aiming to bolster Australia’s economic resilience and national security, transitioning from a critical mineral supplier to a global market leader, strategically capitalising on the rising demand for rare earths, high-tech manufacturing materials and resources for the energy transition.

Prime Minister Anthony Albanese said the Critical Minerals Strategic Reserve would help Australia unlock its full potential of critical minerals at a critical time in the economy.

“In a time of global uncertainty, Australia will be stronger and safer by developing our critical national assets to create economic opportunity and resilience,” Albanese said. “To leverage our natural resources is in our national interest.”

The Critical Minerals Strategic Reserve will be built on by two new mechanisms: voluntary national offtake agreements and selective stockpiling.

The Federal Government will acquire agreed volumes of critical minerals from commercial projects or secure the option to purchase at a set price.

“The Strategic Reserve will mean government has the power to purchase, own and sell critical minerals found here in Australia,” Albanese said.

“It will mean we can deal with trade and market disruptions from a position of strength.”

An initial $1.2 billion investment will support the new reserve, including a $1 billion increase to the existing Critical Minerals Facility, lifting its total value to $5 billion.

Industry groups have welcomed the announcement, with the Association of Mining and Exploration Companies chief executive officer (CEO) Warren Pearce describing the move as “a positive step forward”.

“It will provide support to the private sector and assist international investors and partners with the upfront capital costs of new projects,” Pearce said.

“In the geopolitical context of today, critical minerals are more important than ever. This policy setting will help Australia leverage our position as a major critical minerals player in the global market.”

Minerals Council of Australia CEO Tania Constable welcomed the investment but called for careful implementation.

“We must focus on the fundamentals that will give Australia back the edge over other mining nations,” Constable said.

“These changes would make it easier for companies to invest in Australia, without the need for taxpayer-funded incentives and government intervention in markets.”

The Chamber of Minerals and Energy Western Australia also backed the proposal, with CEO Rebecca Tomkinson saying it shines light on WA’s critical minerals potential.

“Recent trade and geopolitical disruptions present a golden opportunity for Australia to attract the significant investment required to unlock our world-class critical minerals endowment,” Tomkinson said.

“Like other critical minerals, the market for rare earths is thin, opaque and subject to unpredictable price swings, which has acted as a major barrier to getting projects off the ground.

“Federal Labor’s plan to offer voluntary offtake agreements that allow producers to lock-in stable and predictable revenue may assist in bringing projects to market by enhancing their attractiveness to investors.”

• [Editor:Alakay]