The deal between Australia and the United States to dramatically increase investment in rare earths and critical minerals sector will help to unlock growth and prosperity for generations to come – but only if the policy settings are right.
CCIWA Chief Economist, Aaron Morey, said the significant investment by both nations will help to supercharge development of projects in both countries, but challenges remained on the horizon for Australia to achieve its ambitious goals.
“We welcome the Prime Minister’s successful engagement with the US President. We also welcome his strong focus on rare earths and critical minerals, which will be essential to driving forward the global energy transition. However we need to ensure there is an environmental approvals regime in place that allows these projects to get up,” he said.
“At the moment, any new critical minerals project in Australia would face lengthy approval delays and duplication – challenges that are not faced by our global competitors.
Mr Morey said planned reforms to the EPBC Act would be central to ensuring Australia can capitalise on strong investment appetite in critical minerals for things like batteries, solar and wind infrastructure, technology, health and military projects.
“Australia has abundant supplies of rare earths and critical minerals, but we need an approvals system that strikes the right balance,” he said.
“We are hopeful that the reforms to the EPBC Act, expected in Federal Parliament before Christmas, will make it easier to make these projects viable – not harder.”
Mr Morey also said the Western Australian Government’s State Development Bill would be critical in unblocking major projects in mining and other sectors.
“This Bill is seeking to dramatically slash red tape in WA and aims to fast-track major projects in clean energy, defence and other sectors,” he said. “The quicker this Bill can be passed, the better.”
“This will create well-paid jobs for WA workers and draw investment into the state, driving diversification in our economy.”
