Australian Government support for critical minerals

Austrade is developing commercial partnerships that connect Australian companies with targeted sources of offtake and investment. In critical minerals, Austrade’s 3 principal areas of focus are: 

• offtake agreements for (and investment and potential equity in) Australian critical minerals projects to accelerate their development
• foreign investment in downstream processing and value chain creation
• foreign investment in greenfield critical minerals opportunities.

Austrade delivers this capability through specialised services to Australian critical minerals companies. This includes bespoke client engagement programs and targeted trade missions.

The Department of Industry, Science and Resources’ Critical Minerals Office (CMO) provides national policy and strategic advice. The aim is to grow Australia’s critical minerals industry, delivering the Critical Minerals Strategy in partnership with the Austrade, and the Department of Foreign Affairs and Trade (DFAT).

DFAT provides international government-to-government engagement that advances the goals of the Critical Minerals Strategy to create diverse and secure global supply chains for critical minerals, and to attract international investment. DFAT works closely with the CMO and Austrade to build bilateral and multilateral partnerships that enable commercial linkages and support the sector’s development.

Treasury is responsible for Australia’s single front door for major investors as part of the Future Made in Australia act. The department works across government to assist in the facilitate investment in major proposals. 

EFA supports Australia’s trade and infrastructure agenda. It does this by providing commercial finance for exporting businesses. EFA supports critical minerals projects, related infrastructure, and the export supply chain. This is done through the A$4 billion Critical Minerals Facility. For critical minerals projects, EFA aims to fill a demonstrable market funding gap. This would normally be filled through:

• longer tenor loans support longer construction periods
• structured amortisation and interest-only periods​
• more flexibility on offtakes and new export markets.

The Clean Energy Finance Corporation (CEFC) is an Australian Government investor, aiming to deliver on Australia’s ambitions for a net zero future. With a strong investment track record, the CEFC invests to fill market gaps. It collaborates with investors, innovators, and industry leaders to spur substantial new investment for the greatest impact.

The Northern Australia Infrastructure Facility (NAIF) is a A$5 billion lending facility. It provides loans to infrastructure projects in northern Australia. NAIF investments can be used to develop new or materially enhance existing infrastructure. The Australian Government has also allocated A$500 million to NAIF. This supports proponents and end users by investing in the reliable supply of critical minerals.

The A$15 billion National Reconstruction Fund (NRF) was established to facilitate targeted investment. It exists to diversify and transform Australian industry, create secure, well-paid jobs, and boost sovereign capability. The NRF provides finance in the form of debt, equity and guarantees. This supports Australian projects that drive high-value industry transformation. There is A$1 billion earmarked for activities that value-add in the resources sector. This includes:

• manufacturing of innovative products. This is used in or in connection with mining, such as exploration and drilling technology, safety solutions and transport.
• processing, refining and use of minerals here in Australia. This includes refining materials for use in battery manufacturing and technologies.
• manufacturing products and technologies to advance mineral processing, refinement and fabrication.

Geoscience Australia is Australia’s pre-eminent public geoscience organisation. It is a trusted source of information on Australia’s geology and geography. GA provides technical capability, geoscience information, innovation, and advice on critical minerals. The organisation’s critical minerals activities aim to underpin new exploration technologies, stimulate mineral exploration investment, drive new discoveries, and open up new, producing critical minerals provinces.

The Australian Nuclear Science and Technology Organisation (ANSTO) contributes to the development of sustainable alternative supply chains for the Australian critical minerals industry. ANSTO’s minerals business unit has world-leading expertise in critical minerals – in particular the processing of rare earths, zirconium/niobium/hafnium, and other speciality metals.

The Commonwealth Scientific and Industrial Research Organisation (CSIRO) has considerable strengths in critical minerals processing. It generates ideas for innovation and process improvements. This helps Australian mining companies to operate competitively and sustainably. CSIRO is also working on practical technologies. This helps Australian companies upgrade and refine critical minerals to speciality grades, and to manufacture the minerals into intermediate components.

The Future Battery Industries Cooperative Research Centre (FBI-CRC) is jointly funded by a variety of participants across industry, government, and the research community. FBI-CRC has a 6 year research and development program. It targets each stage of the battery value chain, with a mandate to enable the growth of battery industries to power Australia’s future.