The Department of Industry, Science and Resources has detailed a suspected resources decline, forecasting that earnings from iron ore, coal and gas will begin to fall.
However, the news is not all bad, with critical minerals demand set to rise.
According to the June Resource and Energy Quarterly Report, a total of $460 billion worth of resource and energy commodities were exported in the 12 months to the end of June, but earnings are expected to drop to $390 billion in 2023–24.
However, with the demand for renewable energy and electric vehicles (EVs) continuing to rise, there is less danger of critical minerals prices falling in quite the same way. When combined, the minerals needed for the future energy transition is set at $46 billion.
“The latest Resources and Energy Quarterly underlines the government’s plan to support the development of our critical minerals sector, to make Australia a clean-energy superpower, and to help Australia and our trading partners meet commitments to lower emissions,” Federal Resources Minister Madeleine King said.
“The road to net-zero runs through the resources sector.
“Australia is well positioned to supply long-term demand for base metals and critical minerals such as lithium, which are crucial components of clean-energy technologies such as batteries, solar panels, and wind turbines.”
King recently released Australia’s new Critical Minerals Strategy in an effort to grow the country’s critical minerals wealth.
“The new Critical Minerals Strategy outlines the enormous opportunity to develop the sector and new downstream industries which will support Australia’s economy and global efforts to lower emissions for decades to come,” King said.
“While the potential is great, so too are the challenges. The Strategy makes it clear our natural minerals endowment provides a foot in the door, but we must do more to create Australian jobs and capitalise on this unique opportunity.”
