Critical thinking about critical minerals

As the world transitions away from energy systems reliant on fossil fuels, Australia is sitting on an untapped wealth of critical minerals – many of which can power the path to greener horizons. Critical minerals, or the ‘jewels of the future’, harness enormous value in making a sustainable, low-carbon future a reality.  

However, as an industry, we’d be remiss to discount the hurdles to clear for critical minerals to reach critical mass. Marred by market, geopolitical and technological challenges, this makes commercial viability a tough task. 

While there are myriad variables to tackle, several levers to accelerate industry development are within reach. For Australia to take the lead, we first need to underscore the necessity of targeted public sector investment; unpack the technical acumen required to derisk projects; strengthen social licence; and draw parallels with other emerging sectors in the broader context of Industry 4.0.  

From mines to markets 

Australia’s critical minerals market holds significant potential as global demand for low-emission technologies rises. However, securing the right funding to commercialise projects is needed to drive future growth and spur innovation. 

The public sector is pivotal and has a critical role to play in attracting finance from capital markets by incentivising exploration. Australian Government initiatives such as the expansion of the Critical Minerals Facility, the launch of the Critical Minerals Strategy 2023–2030, and the release of the Australian Critical Minerals Prospectus are fuelling uptake.  

State governments are also making significant contributions. Addressing the International Mining and Resources Conference (IMARC) in October, NSW Minister for Finance and Natural Resources Courtney Houssos doubled-down on the industry’s strategic importance to Australia’s net-zero transition, stating we need “six times the amount of critical minerals currently mined to meet net zero commitments”, adding these could be sourced entirely from NSW.  

Despite optimism, funding gaps persist; the nexus between critical-mineral project opportunities and realistic investment funnels for mine development and associated infrastructure is fraught. What’s needed is targeted public sector investment to help stabilise the industry, interpret future demand and restore investor confidence from capital markets. 

Well-structured subsidy programs have been valuable tools to stimulate economic growth and resource development. Recent research carried out in Western Australia demonstrates that government investment in exploration subsidies can yield significant returns, not only through direct economic gains but also by enhancing the overall attractiveness of a region for further private investment. It also reveals that subsidies can generate positive externalities, such as increased geological knowledge, infrastructure development and a higher likelihood of discovering major deposits of critical minerals.  

Risk to reward  

Derisking critical mineral projects is also essential to ensure long-term viability and success. This requires tapping the industry’s technical nous to address key risk factors. 

Firstly, optimising expertise in geological and mineralogical assessments, engineering and project management capabilities, and conducting detailed feasibility studies can inform robust risk management frameworks to identify potential issues early on.  

Environmental and regulatory compliance is another area to build upon, providing sustainable mining practices and navigating complex regulatory landscapes to secure necessary permits. Additionally, leveraging advanced technologies and data analytics is essential to enhance operational efficiency and reduce uncertainties. 

On top of this, responsibly managing our collective mineral needs is paramount for further derisking the sector’s social and economic place within Australia’s energy transition. CSIRO, Australia’s national science agency, released its latest national survey in October examining Australians’ attitudes towards mining, in which 73 per cent of respondents acknowledged critical minerals’ role in achieving net-zero emissions targets. However, while the economic impact of mining and its role in the energy transition are well acknowledged, the survey found that fostering trust, ensuring equitable benefit distribution and engaging communities is crucial for strengthening and maintaining the industry’s social licence. The critical-minerals sector stands at the forefront of this effort, but meaningful consultation and considerations around community need to become steadfast principles to raise industry sentiment and reposition mining’s role as an enabler of commodities that can power the future. 

Powering progress  

The sector can benefit greatly from the renewable energy industry’s experiences in talent attraction, retention and project viability. One key takeaway is the importance of developing a skilled workforce. The renewable sector has successfully implemented training programs and partnerships spanning the private sector, public sector and academic ecosystem to build a robust talent pipeline. Employee retention is another area where the renewable energy industry has shown that offering unique career development opportunities and fostering inclusive workplaces can help significantly reduce turnover. 

Similarly, the critical minerals sector can invest in specialised talent initiatives to address skill shortages, prepare for future demand and position itself as an attractive and purposeful sector in the context of delivering the work that the world needs.  

In terms of project viability, adopting advanced technologies and robust risk management practices is also crucial. The energy sector’s hydrogen scale-up has shown significant progress, driven by technological advancements and favourable market conditions. Just as the hydrogen business case is benefiting from technology and innovation incubation, the critical minerals sector could be well suited to leverage advanced extraction and processing technologies to enhance efficiency, reduce costs and boost future uptake. 

No time like the present 

Accelerating development of the critical mineral sector is good for national competitiveness and a vital tool to bolster Australia’s long-term economic sovereign capability. 

By thinking critically and acting strategically through targeted public sector investment, highlighting the country’s homegrown technical nous and repositioning minerals for the future, Australia will be better placed to make a collective, concerted effort to untap the sector’s full potential.