Despite the transition away from fossil fuels, mining still has a strong future in Australia.
The new critical minerals prospectus lists resources that are essential to renewable energy developments and other high-tech applications.
Critical minerals are elements that are “essential for the functioning of our modern technologies, economies or national security,” according to Geoscience Australia.
Among the most important are those used for semiconductors, like silicon, indium and gallium, which are used for computer processors and solar panels.
The prospectus offers a buffet of 52 mineral projects, to attract investment to this relatively new frontier of the mining sector.
Trade minister Don Farrell said Australia was on the cusp of a golden age of critical minerals development.
“This prospectus showcases many game-changing Australian critical minerals opportunities for international investors. We have an abundance of minerals with a strong regulatory environment and a range of free trade agreements with countries in need of our resources,” he said.
“More international investment in critical minerals means more jobs, including value-adding jobs for Australian workers on these projects.
“We are actively engaging with international trade and investment partners to diversify our critical minerals supply chains and create new opportunities.”
The Australian Strategic Policy Institute said Australia has put itself at a geo-political disadvantage by writing itself out of the microprocessor supply chain.
A report by Alex Capri and professor Robert Clark argues this presents both opportunities and challenges.
They highlight the challenge of supply chain disruptions due to COVID-19 slowing the distribution of critical technology in Australia.
With almost all modern technology at least partially reliant on semiconductors, this represents a serious risk in the future to local manufacturing, renewable energy development, and other developing industries.
Australia’s ready supply of critical minerals places the country well not just to become a raw supplier, but to value add by creating a microprocessor foundry.
“Having unfettered access to microchips is a matter of economic and national security, and, more generally, of Australia’s day-to-day wellbeing as a nation,” they said.
“In an increasingly digitised world, policymakers must treat semiconductors as a vital public good, almost on par with other basic necessities such as food and water supplies and reliable electricity.
“Australia’s public sector must step up to facilitate the right kinds of public–private partnerships, provide targeted funding for semiconductor R&D and education, and create commercial incentives for foreign and local investments.”
While many advanced economies have burgeoning semiconductor and microprocessor industries, Taiwan still produces more than 60% of the world’s semiconductors, in one of the world’s most advanced manufacturing facilities.
Energy hawks have identified too, how China’s challenges to Taiwanese independence could represent a threat to the ready supply of these critical minerals.
This necessitates investment in critical minerals from a security perspective — not only economic.
This goes some way to explain the absence of coal from the critical minerals list. Australia’s ready domestic suppl, and comparatively low level of processing required mean they are not a central concern for policymakers — despite disagreement from some mining companies.
Resources minister Madeline King said it was essential we turn our attention to the minerals we need for the energy transition.
“The road to net zero runs through Australia’s resources sector,” she said.
“But we need to attract investment to get these minerals out of the ground, to process them here, to build the batteries, wind turbines and solar panels required to make the switch to a lower carbon economy.
“This prospectus will help attract the investment we need to build new industries, create jobs and reduce global emissions …
“The road to net zero runs through Australia’s resources sector.”
READ MORE:
Why minerals and rare earth elements are critical for Australia’s security
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