Chris Ellison says the Federal Government’s $2 billion top up of Australia’s critical minerals investment fund is “not enough”, putting the mining billionaire at odds with WA’s peak resources body.
Prime Minister Anthony Albanese announced on Tuesday during a visit to the United States that the Federal Government would double its funding of low-interest loans for miners and processors of critical minerals to $4 billion.
The minerals include cobalt, lithium, manganese rare earths and vanadium, which are used for clean energy technologies such as electric cars, wind turbines and renewable energy battery storage.
Mr Ellison said debt finance alone was “not enough” to make Australian downstream processing cost competitive.
“Other jurisdictions are offering significant grants and tax incentives for the same investment, in addition to often having a lower cost base and faster project approval timelines,” the Mineral Resources boss said.
“We remain hopeful the Federal Government will seize the opportunity and help create more value in Australia from our raw materials.
“In the absence of further urgent action from Government, it’s unlikely MinRes can justify the expense of building a downstream processing facility in Australia.”
In June, Mr Ellison criticised the Federal Government’s $500 million Critical Minerals Strategy, saying the blueprint failed to back up its rhetoric with any meaningful investment.
“This missed opportunity will keep Australia handicapped in the global race to capture more value from our battery minerals,” Mr Ellison said at the time.
“Real action like tax incentives, fast-tracked approvals and financial assistance are urgently required if the Government is serious about competing in a post-Inflation Reduction Act world.”
CME WA chief executive Rebecca Tomkinson backed Tuesday’s announcement of a $2 billion injection into the critical minerals investment fund.
“Australia is a high-cost environment by international comparison, and State and Federal policy initiatives and financial support are essential to ensure Australia is well positioned to meet the global demand for our critical and battery minerals to support the transition to net zero,” she said.
Ms Tomkinson said it was pleasing to see the Prime Minister reaffirm WA’s role in the energy transition.
“The world’s pathway to net zero runs right through WA,” she said.