Why Australia for critical minerals

A safe place to invest

Australia is one of the most attractive places to do business, with strong government support for critical minerals. We score much higher than other Organisation for Economic Cooperation and Development (OECD) countries – on aspects such as governance, regulatory quality, and rule of law. Despite the challenges of global inflation, Australian GDP growth projections for 2025 exceed forecasts for many other advanced economies. Although home to 0.3% of the world’s population, Australia is a centre of economic dynamism. It is the 12th largest economy in the world.

Australia has a stable economy, low sovereign risk, and a strong rules-based system. This provides opportunity to safely and consistently invest capital. Australia ranks 6th among OECD nations for worldwide governance. This strengthens the long-term viability of mining investments. As a result, Australia’s resources sector continues to set records for exports of high-quality minerals that satisfy increasing global demand.

More about Australian Government support for critical minerals.

Robust and thorough ESG practices

Australia has a secure supply of minerals for industrial end-users. This requires the effective management of all environmental, social and governance (ESG) considerations related to mining and processing. Australian mining companies have a global reputation for extracting minerals responsibly, with robust environmental, social, and labour protections. 

Australian companies are investing in renewable energy. The aim is to decarbonise operations and processes along the supply chain. Australian critical minerals companies view ESG reporting as an opportunity to create value for customers and investors. The sector is recognised for the focus on community and labour relations. This includes management of water and greenhouse gas emissions ^[5]

World leading mineral endowment

Australia’s geology presents unique investment opportunities. Ranked in the top ten globally for ten critical minerals, Australia and its geology presents exceptional opportunities for investment.

Australia spent over A$4 billion on mineral exploration in 2023. Its extensive precompetitive geoscience program underpins exploration and mineral discoveries across the country.

Geoscience Australia (GA) managed the A$225 million Exploring for the Future program from 2016-2024. The Exploring for the Future Program was Australia’s premier investment in precompetitive geoscience. It progressed world-class, Australia-wide data coverage. Building on the success of Exploring for the Future, GA will lead the 35-year, $3.4 billion, Resourcing Australia’s Prosperity initiative. Resourcing Australia’s Prosperity commenced on 1 July 2024. This will accelerate the discovery of critical minerals and other resources necessary for the net zero transition.

A highly skilled workforce and a globally recognised METS sector

The Australian resources sector benefits from a talented and highly skilled workforce. Our top-ranking education system, coupled with a focus on growing in-demand skills, supports the longevity of a work-ready talent pool. With research institutions in the world’s top 1% across 15 different fields, Australia’s workforce includes a variety of skills needed in the resources industry^[6].

The competitiveness of Australia’s resources sector is underpinned by an advanced METS industry, which directly employs more than 300,000 people^[7]. Our METS producers have long embraced robotics, automation, and big data. This means Australian resources projects are efficient and productive while being compliant with world leading ESG standards.

Comprehensive financial incentives

The Critical Minerals Strategy and Future Made in Australia plan include a range of incentives, finance facilities, grants and other support for the critical minerals sector:

• The A$4 billion Critical Minerals Facility supports projects aligned with the Critical Minerals Strategy, in Australia’s national interest.
• Up to A$500 million of the A$5 billion Northern Australia Infrastructure Facility is earmarked to help finance projects in the NT, QLD and WA.
• The Critical Minerals Production Tax Incentive will provide a production incentive valued at 10 per cent of relevant processing and refining costs for Australia’s 31 critical minerals. This incentive will be applicable for up to 10 years per project. The incentive covers production between 2027–28 and 2039–40, by projects that reach final investment decisions by 2030.
• Up to A$1 billion of the A$15 billion National Reconstruction Fund is earmarked for value-addition in resources. processing, refining and using critical minerals here in Australia. This is design to help transform the economy and drive innovation.
• The A$10 million Critical Minerals National Productivity Initiative to develop pre-feasibility studies of common-user infrastructure for the critical minerals sector.
• Direct investments, debt and asset finance through the Clean Energy Finance Corporation. The Australian Government’s specialist investor is at the centre of efforts to deliver on Australia’s ambitions for a net zero future.