Government announces $2bn loan facility for Australia’s critical minerals sector

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The Federal Government announced it would set up $2 billion loan facility for Australian critical minerals projects to help secure the vital supplies of resources needed to drive the new energy economy and support the resources jobs of the future.

Making the announcement, Prime Minister Scott Morrison said the $2 billion Critical Minerals Facility would ‘effectively help fill finance gaps in critical minerals resources developments’ to get them up and running.

“The commercial dimensions of the critical minerals market mean it is a difficult place to get established. We want to ensure that Australia’s resources producers do get established to they can link up with others in our supply chains in a free and open Indo-Pacific,” the Prime Minister said.

“Critical minerals are a strategic area for governments too because they are fundamental to the future energy economy.

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“These projects also mean jobs in construction, infrastructure development and ongoing roles for the mining sector.”

Australia boasts some of the world’s largest recoverable reserves of the critical minerals used in advanced technologies, such as renewable energy, aerospace, defence, automotive and electric vehicles in particular, telecommunications and agri-tech.

Minister for Trade, Tourism and Investment Dan Tehan said Australia, noted that global demand for critical minerals needed for clean technology applications, like high powered magnets and batteries, was expected to grow exponentially over the coming decades.

“The global growth in demand for critical minerals to be used in the production of the latest technologies represents an incredible opportunity for Australia to utilise its natural resources and world-leading mining know how to become a leader in the extraction, processing and supply of critical minerals,” Minister Tehan said.

“Australian critical minerals will help other countries in the Indo-Pacific and beyond to accelerate their industrial reforms and transition to low-carbon technologies and that benefits Australia and our partners.”

According to the Government’s statement, the $2 billion loan facility will be managed by Export Finance Australia and will operate on the National Interest Account for 10 years or until finance equivalent to $2 billion has been provided.