The government intends to secure rights to domestically produced minerals. Partner countries are also to benefit.
Australia is planning to establish a strategic raw-materials reserve. The initial focus will be on rare earths, gallium, and antimony, all sourced from domestic production. This was announced in a joint statement by Finance Minister Jim Chalmers, Resources Minister Madeleine King, and Trade Minister Don Farrell.
Specifically, the government plans to secure access and sales rights to minerals produced within Australia. When needed, these materials can be stored, released, or sold to companies and partner countries. A budget of around $800 million (AUD 1.2 billion) has been allocated for these measures. Most of the funding will go toward the actual purchase of raw materials, with just under 15 percent earmarked for stockpiling.
It was reported last week that guaranteed price floors and price ceilings could be introduced as part of the national raw-materials reserve to reduce investment risk for projects.
The critical minerals named are important for a wide range of civilian and military key sectors. Gallium, antimony, and seven of the 17 rare earth elements, as well as many related compounds and products, are subject to strict export controls by China, the world’s main producer. As a result, exports have fallen sharply at times.
In response to these supply uncertainties, Australia’s planned raw-materials reserve is also intended to stabilize partner countries’ supply chains. With the United States, for example, a comprehensive agreement on the development of joint mineral projects was concluded at the end of October.
In rare earths, Australia is already the world’s largest producer after China, with mining company Lynas as the key player. The country also has an active antimony mine at Costerfield, and further projects to mine and process the metal are in development. Gallium, by contrast, is currently produced only in small quantities as a by-product of aluminum production, but an expansion is planned, including the construction of a refinery under the U.S. agreement.
Photo: Adrian Wojcikm, art-illustrations-images