A feasibility study for a common user critical minerals advanced processing facility based in Perth, Western Australia is set to receive a $3 million joint investment from the WA and Federal Governments.
The funding will be granted through the $10.2 million Critical Minerals National Productivity Initiative, which was introduced in May 2024 and involves the Department of Industry, Science and Resources partnering with states and territories to identify potential common user facilities for critical minerals processing.
The feasibility study will be led by the Minerals and Resources Institute of Western Australia, with the facility comprising pilot plant equipment for small and medium sized businesses to undertake downstream processing of critical minerals such as lithium, nickel and high-purity alumina, and strategic materials such as copper and aluminium at a demonstration scale.
Federal Resources Minister Madeleine King described the investment as another step in the ‘Future Made in Australia’ policy, creating local well-paying jobs in Australia.
“Common user facilities are an important piece of the puzzle when it comes to scaling up our capacity to process our mineral resources here onshore – while securing more of the value chain,” King said.
“By equipping local businesses with the tools to process what they dig up, we’ll not only be helping them collaborate and grow – but also enhancing our economic resilience and further strengthening Australia’s sovereign capability.”
WA Mines and Petroleum Minister David Michael said the feasibility study will increase Australia’s advanced processing capabilities amid the global energy transition.
“To achieve these ambitions, a critical minerals advanced processing facility capable of demonstrating critical minerals processing to a more advanced value-added stage, will lead to the development of greater onshore processing and manufacturing opportunities, over the next 10 to 20 years,” Michael said.
The feasibility study has been welcomed by the WA mining sector, with the Chamber of Minerals and Energy WA acting chief executive officer Adrienne LaBombard describing it as an “encouraging step towards realising WA’s downstream processing potential”.
“If proved feasible, a common use critical minerals advanced processing facility would allow businesses to pilot downstream processing without having to commit to expensive upfront investment in their own plant and equipment,” LaBombard said.
“It is the kind of economy of scale that is vital to moving WA down the production cost curve and improving our international competitiveness.”
However, LaBombard warned the facility on its own is not enough to attract further investment in the critical mineral processing opportunities WA possesses.
“Without sustained upstream production there can be no downstream processing – which is why CME is calling for a back-to-basics approach that prioritises getting the fundamentals right,” LaBombard said.
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