As Australia gears up for the renewables race with the rest of the world, Federal Resources Minister Madeleine King has not ruled out tax breaks for critical mineral projects and lithium processing.
Speaking at Minerals Week, King discussed the release of the Federal Government’s new Critical Minerals Strategy, which outlines a vision to grow the critical minerals sector to 2030.
“The strategy identifies where the Government can be most effective – as well as fiscally responsible – at enabling future growth across the sector,” King said.
“We are focusing on getting our policy settings right and leveraging our strategic advantages.”
King underlined Australia’s need to leverage growth through partnerships with allies, citing the recent Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact signed by Prime Minister Albanese and US President Joe Biden earlier this year.
“The Compact is a historic step in our bilateral work with the US to build reliable and sustainable clean energy supply chains,” King said.
According to the Intergenerational Report released last month, the global demand of critical minerals will need to increase by around 350 per cent by 2040 for the world to reach net zero emissions by 2050.
King emphasised the importance of fostering growth in Australia’s mining industry now more than ever.
“This industry is at the heart of the fight against climate change,” she said.
“The fragility of global supply chains is motivating governments and companies around the world to assess their supply chain resilience for commodities and manufactured goods.”
Addressing a two-day mining conference King pointed to the US Reduction Act as an example of strong investment brought on through production credits, the Australian Financial Review reported.
“That’s proven to be, and will be, an extraordinary policy for the US, driving, clean and green technology development, as well as critical minerals partnerships,” she said.
“So, it’s certainly on the table.”
