Loan support for critical mineral projects offering resources jobs of the future
The Federal Government will establish a $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
Australia has among 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.
Prime Minister Scott Morrison said the commercial dimensions of the critical minerals market mean it is a difficult place to get established. The fund would effectively help fill finance gaps in critical minerals resources developments to get them off the ground.
“We want to ensure that Australia’s resources producers do get established so they can link up with others in our supply chains in a free and open Indo-Pacific,” the Prime Minister said, echoing areas of importance highlighted by the Quad Leaders' Summit last week.
“Critical minerals are a strategic area for governments too because they are fundamental to the future energy economy."
“These projects also mean jobs in construction, infrastructure development and ongoing roles for the mining sector.”
Global demand for critical minerals needed for clean technology applications, like high powered magnets and batteries, are expected to grow exponentially over the coming decades.
Minister for Resources and Water Keith Pitt said the Coalition Government’s new $2 billion Critical Minerals Facility would ensure Australia remains at the forefront of emerging new opportunities in the global resources sector.
This investment in critical minerals will make Australia a world-leader in the mining and downstream processing of in-demand resources, supporting jobs and communities, particularly in regional Australia.
The $2 billion Critical Minerals Facility will be managed by Export Finance Australia. It will operate on the National Interest Account for 10 years or until finance equivalent to $2 billion has been provided.