This decision follows similar moves made by First Quantum and Wyloo earlier this year.

“This is a challenging time for our critical minerals sector and we’re committed to working closely with State and Federal Governments to ensure our policy settings remain competitive, enabling the industry’s viability across all time horizons – short, medium and longer-term,” Ms Tomkinson said.

“BHP is a significant employer in WA with strong ties to the local communities of Leinster, Leonora, Kalgoorlie and Kambalda. I know this decision comes after months of operational review and careful consideration of options. It has not been made lightly.

“We are fortunate right now that the WA minerals sector remains vibrant, so workers impacted by this decision are in a good position to secure work elsewhere in resources.

“But we cannot become complacent. We must continue to keep WA mining strong by having a robust and efficient legislative framework in place that fosters future development.

“I’m pleased to see BHP providing support to the communities that are impacted, through redeployment for frontline workers and the $20 million community fund.”

Ms Tomkinson added that this is not closure of BHP’s nickel business, but a suspension of operations with an option to recommence operations, and other critical minerals operations remain strong. 

“There continue to be significant opportunities for WA in the development of our battery and critical minerals and the broader WA resources industry continues to play an important role in delivering jobs, royalties and broader benefits to the WA community.”

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Media contact: Natasha Mutch, n.mutch@cmewa.com

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“WA’s energy transition needs to be executed in a way that supports a competitive and decarbonised electricity network for the benefit of the community, business and industry”

The Chamber of Minerals and Energy of WA (CME) looks forward to reviewing the Federal Opposition’s energy plan, stressing that all options should be on the table to ensure the transition to net zero is achieved.

CME Chief Executive Officer, Rebecca Tomkinson, said it was important to consider all options in order to supply the volume of low-emissions, cost-effective and reliable energy needed by the industry to sustain the push towards decarbonisation and achieve Australia’s legislated climate targets.

“WA’s energy transition needs to be executed in a way that supports a competitive and decarbonised electricity network for the benefit of the community, business and industry, so CME will consider all proposals that seek to achieve that,” Ms Tomkinson said.

“CME supports the diversification of WA’s resource commodities and energy mix, and our proven standards of ESG responsibility and cutting-edge mining technology open up possibilities for processing a greater range of materials to support the decarbonisation of our trading partners.

“There are short-term and long-term discussions here. In the short-term, we need significant and sustained effort from government to fast-track new energy project approvals and invest in new generation and transmission infrastructure – that’s the activity that needs to happen now or the energy transition opportunities pass us by.

“While it’s critical we have a longer-term strategy and certainty on the broader transition road map, we also need to maintain focus on the shorter-term delivery of low-emissions energy generation and storage, alongside upgrades and expansions to electricity transmission infrastructure.

“In order to achieve this, CME’s message is clear: our industry needs an efficient regulatory regime, turn-key industrial land, incentives to attract investment and stimulate project development, and a reliable, low-cost, clean energy system.”

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“With a 57 per cent increase in annual operational consumption and a 43 per cent increase in peak demand expected 10 years from now, we have to act with urgency”

The Chamber of Minerals and Energy of WA (CME) has said this week’s Australian Energy Market Operator’s (AEMO) report was another indicator of the need for a sustainable, reliable and cost-effective energy system to service community, business and industry.

CME Chief Executive, Rebecca Tomkinson, said the WA Wholesale Electricity Market Electricity Statement of Opportunities (ESOO) highlighted the need for continued capacity investment in the immediate term.

“A key recommendation in CME’s 2024-25 State Government Pre-Budget Submission was for a master transmission plan for the SWIS in consultation with industry, regulators and other key stakeholders,” Ms Tomkinson said.

“We will continue to engage with government on the need for a master plan that takes into account the increasing industry demand for electrification over the coming decade as the push to decarbonisation intensifies.

“With a 57 per cent increase in annual operational consumption and a 43 per cent increase in peak demand expected 10 years from now, we have to act with urgency to build not just the generation and storage required but the transmission infrastructure to connect new supply to customers.”

Ms Tomkinson said the doubling of wholesale electricity prices in WA since 2021 put the competitiveness of businesses and industry at risk.

“Any significant cost increases along the supply chain, including electricity prices, threaten the viability of WA’s resources sector and the enormous contribution it makes to jobs, local businesses, community investment and social infrastructure.”

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“Any amendments to the 46-year-old legislation that can simplify and clarify the requirements of the tenement application process is positive for all stakeholders”

The Chamber of Minerals and Energy of WA (CME) said today’s State Government commitment to commence drafting procedural amendments to the Mining Act 1978 would help alleviate uncertainty over mining tenure and associated issues.

CME Chief Executive, Rebecca Tomkinson, said the updates proposed by Mines and Petroleum Minister, Hon. David Michael, were a welcome acknowledgement of changes that needed to be made in light of the 2017 High Court decision on the Forrest and Forrest v Wilson case.

“Any amendments to the 46-year-old legislation that can simplify and clarify the requirements of the tenement application process is positive for all stakeholders,” Ms Tomkinson said.

“It also makes sense to review supporting guidelines to ensure they take into account contemporary technologies and the expectations of community, business and industry.

“CME has talked a lot about the importance of industry to be agile so it can respond to competitive global opportunities so procedural amendments such as this – that can speed up the legislative process and remove the opportunity for court challenges on administrative grounds – are good news for the resources sector.”

Ms Tomkison added that legal validation of mining tenure created certainty that resonated throughout the sector, from investment through to production and eventually manufacture.

“Understanding that clarity leads to certainty which leads to security, we look forward to providing our members’ input through the consultation phase.”

<ENDS> Media contact: Natasha Mutch n.mutch@cmewa.com

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“If a reliable pipeline of traditional and technical trades can be developed – with the skills needed for the short- and mid-term – it has the potential to be a game changer in advancing strategic projects right across our state.”

Todays’ announcement of a $70.5 million joint investment in training to address WA’s clean energy skills shortage is responsive to calls from the Chamber of Minerals and Energy of WA (CME) and our members on the need to invest in our current and future workforce.

CME Chief Executive Officer, Rebecca Tomkinson, said the Federal-State Government initiative was a five-year plan to establish Australia’s TAFE Clean Energy Skills National Centre of Excellence in WA.

“One of the key factors hindering WA’s aspirations to fast-track renewable energy into the electricity system has been a shortage of the skilled workers needed to progress these projects from the ground up,” Ms Tomkinson said.

“With WA’s abundant sunshine and excellent wind resources, the possibilities for us to be a dominant provider of renewable energy and battery storage are significant – from mineral resource extraction through to production and manufacture.”

She congratulated the State Government on the initiative to activate WA’s TAFE network and build a Centre of Excellence, which also created an opportunity to involve original equipment manufacturers (OEMs) in establishing learning modules informed by the needs of industry.

“One sticking point right across the sector has been workforce shortages, and CME continues to raise this concern with government and stakeholders,” Ms Tomkinson said.

“Working closely with the OEMs, who have the most up-to-date equipment and facilities, we can target the technically-skilled workforce that we need right now and into the future,” she said.

“And we can quickly identify the gaps that need to be filled.

“If a reliable pipeline of traditional and technical trades can be developed – with the skills needed for the short- and mid-term – it has the potential to be a game changer in advancing strategic projects right across our state.”

Ms Tomkinson said the clean energy transition was one of the most significant opportunities of this generation and required a holistic and collaborative approach to deliver on state and national decarbonisation strategies.

“Any investment in training should also take into account the whole picture of skills shortages across each sector, which includes a need for quality trainers to deliver these trade programs and accreditations,” she said.

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“WA has the resources, operational stability and ESG credentials to deliver what the world needs for its energy future but, like any business, we need to be agile and competitive and to do that, we need governments to deliver on their pledges.”

The Chamber of Minerals and Energy of WA (CME) has today welcomed the State Government’s update of Western Australia’s Battery and Critical Minerals Strategy 2024-2030, to which CME and its members contributed throughout the consultation process.

CME Chief Executive, Rebecca Tomkinson, said it was important for state and federal government policies to be refreshed to reflect the industry’s current operating environment, including changes in external factors such as geopolitical tensions, market volatility and patterns of consumer demand.

“Our submission to the Battery and Critical Minerals Strategy update highlighted the key points we have been strongly recommending on behalf of our members, in order for the resources industry to remain resilient and in a position to seize opportunities as and when they arise,” Ms Tomkinson said.

“WA has the resources, operational stability and ESG credentials to deliver what the world needs for its energy future but, like any business, we need to be agile and competitive and to do that, we need governments to deliver on their pledges.

“We have long advocated for greater visibility and stronger, coordinated state-federal effort to reduce the end-to-end regulatory complexity and burden of interagency approvals, to attract strategic investment in our critical minerals.

“A more efficient approvals system means greater certainty for businesses looking to invest and works to improve Australia’s competitive position. It’s encouraging to see this commitment supported by $36.4 million in the State Budget and specified in the strategy update. From here, we’re looking forward to the practical application of that commitment.”

Ms Tomkinson said the provision of common user infrastructure and investment-ready industrial areas helped ensure upfront capital costs were contained and provided more certainty on project approval timeframes, but warned government budget allocations were conservative when compared with other international jurisdictions.

“The provision of turnkey strategic industrial areas and other common user infrastructure, including reliable and cost-competitive energy, can drive economies of scale and reduce operating costs,” she said.

“Don’t underestimate the importance of a low-cost, low-emission, reliable energy system. Not only is it critical for energy-intensive industries as they move to support transition to other sources, it can also open up opportunities for downstream processing.

“We welcome the strategy’s focus on ensuring the resilience of existing upstream industries and prioritising midstream development, but we can’t move downstream without a sustainable and scalable upstream.”

Ms Tomkinson said CME hoped the updated Battery and Critical Minerals Strategy would complement the Federal Government’s Future Made in Australia agenda as well as work in tandem with its Australian Critical Minerals Strategy 2023-2030 to foster the international competitiveness of WA’s resources in the global value chain.

<ENDS> Media contact: Natasha Mutch n.mutch@cmewa.com

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“These significant investments recognise the central role our resources will continue to play in our economy and future prosperity”

The Chamber of Minerals and Energy of WA (CME) has welcomed the Federal Government’s 2024-25 Budget and its centrepiece $22.7 billion Future Made in Australia package including a $7 billion investment in processing critical minerals.

CME Chief Executive Officer, Rebecca Tomkinson, said WA’s resources sector had once again contributed to a strong federal budget position, with higher commodity prices driving an additional $5.5 billion in company tax receipts in 2024-25 relative to the Mid-Year Economic and Fiscal Outlook.

“These significant investments recognise the central role our resources will continue to play in our economy and future prosperity,” said Ms Tomkinson.

“It’s pleasing to see the Federal Government adopt CME recommendations such as a production tax incentive for critical minerals, funding for common-user infrastructure and support to bridge the commerciality gap for renewable hydrogen singled out in the Budget under the Future Made in Australia package. Reforms to streamline Australia’s foreign investment review processes for low-risk investors is an important complementary measure.”

Ms Tomkinson also noted the Federal Government’s pre-Budget announcement last week of $566 million under the Resourcing Australia’s Prosperity initiative to boost data collection and mapping of resources deposits on land and under the seabed.

Minister King’s strong engagement with industry is evident in the design of the initiatives announced today.

“Recommendations for unlocking investment were at the heart of CME’s Federal Pre-Budget Submission, so it’s positive to see the government has paid attention to exploration’s role in developing the pipeline of resources projects that will support the energy transition,” she said.

“We need to ensure that the work being done to improve the identification of resources deposits is complemented by fit-for-purpose policies and frameworks to develop those opportunities in a timely and efficient way.

“When the WA resources sector is strong and competitive, it has a positive flow-on effect for the Australian economy and community.”

However, she reiterated that ensuring a strong ongoing contribution from the resources sector would require inter-departmental coordination if strategic industry and decarbonisation ambitions were to be realised.

“We need assurances that our sector, which is contributing so much to the state and national economies, is not hamstrung by unintended consequences from reforms in the environmental approvals and industrial relations space,” Ms Tomkinson said.

“The Government needs to ensure policies are formed on the bedrock of timely and efficient approvals and competitive fiscal and policy settings across energy, industrial relations and enabling infrastructure.”

Ms Tomkinson added that the establishment of a National Interest Framework to guide the Federal Government’s support under the Future Made in Australia policy made strategic sense.

“We need to play to our strengths, develop sovereign capabilities in critical areas and be realistic about where we can and can’t compete. Embracing those core objectives opens up opportunities to work more strategically with our trading partners.”

Key announcements in the Budget included:

• Critical Minerals Production Tax Incentive – $7 billion over the 11 years from 2023-24 to provide a 10 per cent credit for relevant processing and refining costs for Australia’s 31 critical minerals. The incentive will be applicable for up to 10 years per project, for production between 2027–28 and 2039–40 by projects that reach final investment decisions by 2030.
• Hydrogen Production Tax Incentive – $6.7 billion over the 10 years from 2024-25 to provide a $2/kg incentive to support the growth of a competitive renewable hydrogen industry and Australia’s decarbonisation. The incentive will be applicable for up to 10 years per project, for production between 2027–28 and 2039–40.
• Future Made in Australia Innovation Fund – $1.7 billion over ten years from 2024–25 to support innovation, commercialisation, pilot and early-stage development in priority sectors including renewable hydrogen, green metals, low carbon liquid fuels and clean energy technology manufacturing such as batteries.
• Battery Breakthrough Initiative – $523.2 million over seven years from 2024–25 to promote the development of battery manufacturing capabilities through production incentives targeted at the highest value opportunities in the supply chain.
• Strengthening Approvals Processes – $182.7 million over 8 years from 2023-24 to strengthen approvals for renewable energy, transmission and critical minerals projects, improve social license outcomes, reduce the backlog of complex cultural heritage applications and streamline Australia’s foreign investment applications.
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“WA continues to produce almost half the nation’s goods exports, helping to generate almost $260 billion for the nation.”

Western Australia’s buoyant mining and resources sector has again boosted this year’s State Budget, producing its sixth consecutive surplus, with royalties alone accounting for 26.5 per cent of general government revenue.

The Chamber of Minerals and Energy of WA’s (CME) Chief Executive Officer, Rebecca Tomkinson, said today’s 2024-25 State Budget highlighted the substantial ongoing contribution of the minerals and energy sectors to WA’s economic and social health, adding that the provision went beyond dollars and cents.

“The contributions of our members collectively enable the WA and Federal Governments to provide cost of living relief to WA families, fund our essential infrastructure, deliver frontline services in health, housing and education, and support our communities,” said Ms Tomkinson.

“That’s all underpinned by factors such as the strong confidence of WA businesses, with resources at the top of that tree. There’s an expected 13.25 per cent increase in business investment this year – the highest in more than a decade.

“WA continues to produce almost half the nation’s goods exports, helping to generate almost $260 billion for the nation.”

Ms Tomkinson added that the $3.2 billion budget surplus is significantly aided by strong royalty collections – estimated to reach $11.9 billion in 2023-24 – and payroll tax, to which the WA resources sector is the single largest contributor.

She also warned that while some commodity prices were reasonably buoyant now, State and Federal Governments needed the agility to mitigate strong geopolitical pressures and keep Australia’s industry competitive across the board.

“This budget comes at a critical time for our state’s resources sector, with rising costs, falling commodity prices and strong global competition testing our industry’s resilience,” she said.

“For our sector’s contribution to jobs, local businesses, communities and government revenues to continue to grow we need the basics from the WA Government: efficient approvals, turnkey strategic industrial areas and a low emission, reliable and cost-competitive energy system.

Ms Tomkinson also highlighted that WA’s energy transition towards renewables remained a significant challenge for this decade, adding that CME had called for a draft master transmission plan for the South West Interconnected System (SWIS) along with proposed funding models to be delivered by mid-2024.

Major resources sector-related budget announcements included:

• $500 million for the Strategic Industries Fund to deliver common-user and other enabling infrastructure at Strategic Industrial Areas (SIAs) across regional and metropolitan WA.
• $200 million for a New Critical Minerals Advanced Processing Common User Facility, co-funded by the Commonwealth.
• $324 million to undertake extensive planning and procure long-lead transmission infrastructure for the SWIS to unlock industry growth and connect more renewable energy.
• $147.6 million to support the development of common-user network infrastructure in the North West Interconnected System to open up new opportunities for clean energy.
• $373 million for maintenance and upgrade projects at WA ports.
• $36.4 million to cut green tape and speed up approvals.

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“Our sector contributes so much to the WA and Australian economies that – at Budget time in particular – it’s important that we all support the industries that will help our communities and businesses thrive.”

The Chamber of Minerals and Energy of WA (CME) has acknowledged the State Government’s ongoing investment in the resources sector, and its adoption of key recommendations in CME’s Pre-Budget Submission via a raft of initiatives linked to today’s State Budget.

CME Chief Executive Officer, Rebecca Tomkinson, said today’s announcement to invest in strategic industrial areas (SIAs) across WA had been a significant platform on which CME had advocated to State and Federal Governments, and indicated positive signs of support for the sector.

“Turnkey SIAs which are ready to go with all necessary amenities are more likely to attract investment than a parcel of land that still requires infrastructure, facilities and associated approvals to get off the ground. If it’s not turnkey there’s no certainty for industry and it risks a lot of wasted project time,” Ms Tomkinson said.

“A $500 million commitment through the new Strategic Industries Fund is certainly welcome, but as it’s stretched over 13 sites we’re mindful of ensuring those funds are strategically targeted if we’re to compete with international jurisdictions.

“Similarly, $125 million to open up new industrial land in Kwinana is positive, particularly noting the strong demand which has seen it approach capacity. Adequate supply of affordable and reliable energy as well as transport infrastructure will be essential to support its growth going forward.

“As always, consultation with industry will be critical to ensure public investments in SIAs are deployed to where they will be most impactful.”

Ms Tomkison added that whilst the investment in common user infrastructure through the Strategic Industries Fund was welcomed, it was important to consider the end-to-end requirements of SIAs.

“The government needs to take a lead in progressing stakeholder engagement plus heritage and environmental assessments for the SIAs so they go from undeveloped land to turnkey and ready to go,” she said.

“Competitor jurisdictions including North America have attractive incentives to move into promoted industrial areas. Similarly, Ontario’s ‘Investment Ready: Certified Site Program’ in Canada, is taking advantage of emerging critical minerals opportunities.

“That program ensures each site is fully serviced with electricity, gas, waste, wastewater and telecommunications. Importantly, they also have guarantees of site suitability, including for zoning and environmental and cultural protection, as well as broader supports under their ESG framework allowing projects to hit the ground running.

“While no one is expecting WA to match other jurisdictions dollar for dollar on some of their significant funding initiatives, targeted government investment and up-front co-ordination of these processes is a critical enabler of growth. It would mean certainty for investors that industrial land is project-ready and WA is supportive of development.”

Ms Tomkinson also highlighted the State Government’s commitment to approvals reform with the announcement of $36 million aimed at delivering WA’s environmental assessment framework more efficiently.

“CME has consistently called for more efficiency in environmental assessment practices and better-resourced teams to address backlogs,” she said.

“We’ve outlined this strongly in our Pre-Budget Submission so it is pleasing to see our recommendation adopted and $14.1 million allocated for the establishment of cross-sector triage teams across regulatory agencies.

“Our sector contributes so much to the WA and Australian economies that – at Budget time in particular – it’s important that we all support the industries that will help our communities and businesses thrive.”

Ms Tomkinson noted CME was also hoping to see further commitments aimed at progressing WA’s cleaner energy objectives following the State Government’s Energy Transition Summit in November last year. She said CME was keen to see if key recommendations in their Pre-Budget Submission would be addressed at today’s budget announcements.

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“CME has advocated strongly for this legislation to ensure WA’s resources sector has access to a full range of decarbonisation technologies”

The Chamber of Minerals and Energy of WA (CME) has welcomed progress by the State Government to support the decarbonisation of hard-to-abate sectors. These moves complement the Federal Government’s Future Gas Strategy, released today.

CME Chief Executive, Rebecca Tomkinson, said the passage of the Petroleum Legislation Amendment Bill 2023 through the Legislative Council provided a framework allowing carbon capture and storage (CCS) to be broadly utilised in WA, but noted urgency was now required to develop the supporting regulations and guidance so these projects can proceed.

“CME has advocated strongly for this legislation to ensure WA’s resources sector has access to a full range of decarbonisation technologies, which are an essential mechanism for achieving Australia’s targets,” Ms Tomkinson said.

“CME continues to support investment in a broad range of affordable technologies including for energy efficiency, abatement and carbon sequestration, so the passage of this legislation is important to enable industry to include CCS in their decarbonisation pathways.

“The potential to explore a range of naturally-occurring and low-emissions energy sources, including hydrogen, is a significant step towards a cleaner energy future, but as we’ve said previously, these initiatives need to link up.

“These announcements are positive for industry and CME is keen to see how they integrate to form a cohesive pathway through regulatory approvals, investment incentives, turnkey readiness and project implementation.

“Without that integration we’re not really advancing the industry’s agility and competitiveness,” she said.

Ms Tomkinson added that it was a positive sign to see the State and Federal Governments acknowledging the role of CCS as part of a suite of abatement measures in Australia’s own ability to progress resources projects for the energy transition, while keeping decarbonisation targets viable.

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Media contact: Natasha Mutch n.mutch@cmewa.com

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