“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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“This initiative means companies can understand where critical resources seams are located and how they interact with the needs of other important onshore and offshore projects”

The Chamber of Minerals and Energy of WA (CME) has today welcomed the Federal Government’s announcement of $566 million to boost data collection and map resource deposits on land and under the seabed as part of the Resourcing Australia’s Prosperity initiative.

CME Chief Executive, Rebecca Tomkinson, said the investment in Geoscience Australia under the Future Made in Australia policy was an intelligent way to leverage geoscientific data and ensure projects had greater clarity for investment and initiation.

“This initiative means companies can understand where critical resources seams are located and how they interact with the needs of other important onshore and offshore projects,” Ms Tomkinson said.

“Having publicly available information is critical to ensuring there is common understanding of locations of resources so that future development can balance land interests and values across environmental protection, agriculture, electricity generation, transmission infrastructure, social needs, and large-scale renewable energy projects.

“It’s counter-intuitive, for example, to place a wind or solar farm directly over an area that is needed for the critical minerals deposits required by renewable energy projects.”

Ms. Tomkinson added the funding boost will augment work already being done by Geoscience Australia and will complement the local dataset from Geological Survey of WA but warned there was little point in discovering more deposits if there were unviable constraints to develop them.

“It’s important this investment in scientific data is supported by appropriate industry policy to ensure Australians can benefit from the immense opportunity laying below the surface,” she said.

“Today’s announcement is consistent with a key theme in CME’s Federal Pre-Budget Submission with recommendations aimed at ‘unlocking investment’. The right policy and fiscal settings will be critical to ensure the discovery of new mineral seams can then be developed efficiently and in a competitive way.

“Exploration is the foundation of the resource development pipeline and the development of those resources is imperative to the industry’s ongoing contribution to the state and federal economies, employment, services, and social infrastructure. The State and Federal Budgets tell us that much.”

Ms Tomkinson said it was pleasing to note that the mapping specifically included offshore areas that were critical for the development of carbon capture and storage (CCS).  She said CCS technology was seen as an important part of Australia’s decarbonisation pathway.

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

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“Ultimately, the world needs to decide if it values operational standards, resources quality and ESG compliance because that needs to be reflected in prices.”

The Chamber of Minerals and Energy of WA (CME) Acting Chief Executive Officer, Adrienne LaBombard, said today’s announcement by First Quantum Minerals to put its Ravensthorpe nickel operations into care and maintenance was a sign that WA companies are challenged to remain commercially viable in a highly competitive global market.

“We know that companies like First Quantum have a strong presence and deeply embedded relationship with the local community, and decisions like this aren’t made lightly,” said Ms LaBombard.

“The State Government has recently made efforts to support the critical minerals sector’s resilience through initiatives such as royalty relief, which CME has welcomed, but the fact is the cost of doing business in Australia is high.

“The WA resources sector is experiencing significant inflationary pressures that work against us when compared with companies in other jurisdictions, especially if those competitors don’t hold the same safety, product quality or ESG credentials.”

Ms LaBombard said critical, or battery, minerals represented a strategically important sector for the state and the country, and there needed to be a solution for the short- and mid-term, as well as settings that ensured viability and sustainability in the longer-term.

“The State Government’s Nickel Financial Assistance Program is one of many measures needed in a coordinated and proactive response by both State and Federal Governments,” she said.

“As we have seen by today’s announcement, further strategies and actions are required to secure the longevity and resilience of the sector. That means both fiscal and industry policy settings including incentives like a production tax credit, access to project-ready land and streamlined regulatory permissions.

“Ultimately, the world needs to decide if it values operational standards, resources quality and ESG compliance because that needs to be reflected in prices. In the meantime, there’s a risk the global energy transition will slip from our grasp and WA will lose opportunities other countries will willingly seize.”

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

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“The strong ESG standards to which the WA resources sector operates is not reflected in global prices, creating an unfair playing field.”

The Chamber of Minerals and Energy of WA (CME) has responded positively to today’s joint announcement by Canada and Australia on critical minerals, noting the potential of such partnerships for strengthening the move towards a sustainable global energy transition.

CME Chief Executive, Rebecca Tomkinson, said the cooperative approach between the two countries was important to ensure a cleaner energy future was achieved with responsibly-sourced commodities.

“The Australian Government has an opportunity to work with our trading partners to support the development of price and ESG transparency in critical and battery minerals markets, and this agreement is a positive sign,” Ms Tomkinson said.

“The strong ESG standards to which the WA resources sector operates is not reflected in global prices, creating an unfair playing field.

“We need to ensure that those who are purchasing our commodities understand the value of our environmental, social and governance standards, and that due diligence obviously comes with an associated cost.

“Supply chain diversity, security and transparency are not new issues but in the context of the global energy transition, they become significant for how the industry continues to operate in a sustainable way.”

Ms Tomkinson added that regardless of WA and Australia’s high standards, the industry needed to be competitive in international markets, with government intervention needed to reduce bureaucratic red tape, attract investment and keep operating costs to a minimum.

“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 the state and federal governments have a role to play in that.”

<ENDS> Media contact: Natasha Mutch / media@cmewa.com.au

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As a nation and as a state we can’t afford to approach global energy transition like a snakes and ladders game.

Today’s announcement by the WA Government to adopt the Chamber of Minerals and Energy of WA’s (CME) recommendation for a nickel royalty relief package has been recognised as a promising measure for the sustainability of the state’s nickel industry.

CME Chief Executive Officer, Rebecca Tomkinson, said the Nickel Financial Assistance Program was a positive sign that the weeks of urgent discussions with state and federal ministers and parliamentarians on behalf of industry were productive.

“This shows the state’s understanding of the importance of nickel to the critical minerals aspirations of downstream processing,” said Ms Tomkinson.

“CME has made it very clear that targeted and evidence-based government support such as temporary royalty relief makes sense for the nickel sector in the near-term, given the significance of the industry to local employment, the economy and our national strategic interests.

“Battery minerals represent a strategically important sector for the state and we need to ensure we have a solution for the short- and mid-term, as well as settings that ensure viability and sustainability in the longer term.

“The State Government’s Nickel Financial Assistance Program is one of many measures needed on the path to net zero so I look forward to seeing further strategies and actions that secure longevity in the sector.”

Ms Tomkinson said removing inefficient government processes and delivering competitive fiscal settings would be needed to attract investment in Australia’s battery and critical minerals industry and achieve 2030 and 2050 decarbonisation targets.

“As a nation and as a state we can’t afford to approach global energy transition like a snakes and ladders game,” she said.

“We have all the key people at the table so now it’s about coordinating our efforts, and we appreciate the State Government acting on this.

“Collectively, the State and Federal Governments need to ladder up and act before prospects to advance the global energy transition slip away and WA loses opportunities that other countries will willingly seize.”

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

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