Before the year ended, the Australian Government unveiled its updated Critical Minerals List, aligning the country’s list more closely to its international strategic partners.
The expanded list has made way for the inclusion of minerals such as fluorine, molybdenum, arsenic, selenium, and tellurium. Additionally, helium has been removed from the list.
Critical minerals are vital to accelerating the energy transition, and according to the Federal Government, the newly listed commodities are all used in the defence and technology sectors.
Minister for Resources and Northern Australia Madeleine King said the changes follow an extensive consultation with industry, the public, and states to support Australia’s growth as a significant exporter of clean energy materials.
Along with the updated Critical Minerals List, the Federal Government has also launched its newly developed Strategic Materials List.
“The updated Critical Minerals List and the new list of Strategic Materials will help government focus on those commodities needed to create jobs, keep us secure and power our economy,” Minister King stated.
Nyrstar has long been campaigning for the inclusion of zinc into the list. With the introduction of the commodity into the new Strategic Materials List, the company has welcomed the news.
Nyrstar has acknowledged the Australian Government’s thorough consultation process in revising the Critical Minerals List and ongoing policy development. The company calls for further engagement with industry to understand how the new lists will inform government policy and investment to secure Australia’s minerals and metals for its economic future, including technologies and products essential to international partners.
Nyrstar’s white paper predicts a significant annual demand for zinc between 2020 and 2030, equivalent to 20% of global supply, resulting in a supply gap equivalent to 150% of Australia’s current total zinc mining output, according to industry estimates.
“By recognising zinc’s strategic importance and risks to its supply chain, Australia will also be better positioned to improve bilateral cooperation with its international partners on projects that address the challenges facing the looming supply gap and increasing supply chain concentration facing both zinc and the critical minerals it unlocks,” Nyrstar Global Co-CEO Dale Webb said.
“The energy transition is causing a rapid disruption in traditional markets for many commodities that Australia is well positioned to benefit from. We will continue to address this challenge by looming market failures facing our nation and our trading partners in critical minerals,” Webb added.
Meanwhile, the Chamber of Minerals and Energy of WA (CME) has announced it is evaluating the revisions made to the Critical Minerals List to discern their impact and value to the industry.
CME Chief Executive Rebecca Tomkinson said the revisions were timely but clarified that the value of being on the list remains to be determined.
“CME has advocated to the Australian Government for the inclusion of key minerals to the list so they are covered under the Australian Critical Minerals Strategy 2023-2030 and recognised for their role in achieving 2030 emissions reduction targets,” Tomkinson stated.
According to her, the global energy transition is causing a record-high demand for WA’s resources, but defining the value of being on the critical minerals list remains challenging.
“Over half of Australia’s critical minerals projects are in WA, so we would welcome more detail on how the list will support the Critical Minerals Strategy. Clearer pathways for critical minerals projects to access financial incentives and investment support mechanisms would be a strong message of support from government,” she added.
Moreover, Tomkinson expressed her desire for more information on how adding copper, nickel, zinc, and aluminium to the strategic minerals list could enhance industry benefits and the energy transition.
On the other hand, the Association of Mining and Exploration Companies (AMEC) Chief Executive Warren Pearce said the updated Critical Minerals List is a wasted opportunity as the government failed to include nickel and copper in the list.
“That’s not to say, that these additional minerals aren’t important. Of course they are. But in terms of the economic opportunity for Australia that these minerals represent, it is relatively small,” Pearce stated.
He added that Australia has immense potential for developing large nickel and copper projects, along with local down-streaming, presenting immense value and opportunity.
According to AMEC, the industry predicts a four-fold increase in nickel demand by 2050, while copper demand is projected to double before 2050.
“This is the type of development opportunity that could set up Australia’s economy through much of this century,” Pearce continued.
AMEC noted that with the exclusion of nickel and copper from the list, they would not be eligible for industry support programs such as the $4 billion Critical Minerals Facility, which helps with project financing and development.
“This news couldn’t come at a worse time, for Australia’s nickel industry, with companies battling high costs and a flatlining nickel price, primarily due to major competition from Indonesia,” Pearce said.
“Adding nickel and copper to the critical minerals list would have helped grow Australia’s critical minerals sector exponentially, by growing our position as a globally significant producer of both raw and processed critical minerals.”
The Australian Critical Minerals List was last updated in March 2022, and a recent review was conducted in July 2022, aligning with the Federal Government’s Critical Mineral Strategy 2023-2030 to become a global raw and processed mineral supplier by 2030.
