Australia announces critical minerals priorities for $1.2b strategic reserve
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The news: The Albanese government has announced plans to prioritise antimony, gallium and rare earth elements as part of its $1.2 billion critical minerals strategic reserve.
The context: In a joint statement, Treasurer Jim Chalmers, Resources Minister Madeleine King and Trade Minister Don Farrell said it will initially focus on antimony, gallium and rare earth elements due to their role in clean-energy and high-technology manufacturing as well as advanced military equipment.
Rare earths are used to make high-performance permanent magnets, essential inputs to a range of technologies from fighter jets to MRI machines. Antimony is used in household and commercial batteries, while gallium is a key ingredient for advanced semiconductors used in radar systems and telecommunications.
The strategic reserve will operate by securing rights to minerals produced in Australia and on-selling those rights to meet demand, providing additional support to Australia's critical minerals sector and strengthening reliable supply chains for global trading partners.
The $1.2 billion commitment comprises $1 billion for transactions to be drawn from the expanded $5 billion critical minerals facility, with a further $185 million allocated for selective stockpiling of minerals.
The government said the reserve will support Australia's collaboration with international partners to diversify critical minerals supply chains and confirmed it will introduce legislation this year to provide Export Finance Australia with additional powers to support the initiative.
What they said: "In a rapidly changing world, the Strategic Reserve is all about safeguarding Australia’s future prosperity ... the world needs critical minerals and Australia has plenty of them and our critical minerals reserve will help us weather global economic uncertainty and help to boost trade and investment," said Chalmers.
The source: Minister for Resources media release
