The comprehensive review recognises a wide range of technologies and approaches are necessary to reduce emissions and galvanise efforts to remove barriers to investment.

It confirms that the transition requires ‘significant effort’ across all sectors and will involve trade-offs to ensure “the burdens and benefits are fairly shared between governments, sectors, businesses, regions and communities”.  

Chamber of Minerals and Energy of WA (CME) Chief Executive Officer Rebecca Tomkinson said improving availability of low emission electricity was a vital first step and key enabler for decarbonisation of the WA resources sector.

“Whether grid-connected or remote, decarbonisation of resources operations from mine sites to downstream processing facilities depend on access to electricity that is low emission, reliable and affordable,” Ms Tomkinson said.

“It was pleasing to note that the Review identifies the significant role the Federal Government has in coordinating delivery of Australia’s net zero ambitions with state and territory governments.

“Given the pace and scale of the task, our sector has been consistently calling for stronger coordination within and across governments to maximise efficient delivery of projects essential to the global transition”

The CME acknowledges the recent work of the WA Government to speed up environmental approvals. However, our members continue to advise that extended assessment timeframes at both state and federal levels are delaying decarbonisation and renewable energy projects and proving a barrier to securing international investment.

“We urge the state and federal governments to continue reforming the planning and approvals processes, to speed up the deployment of renewable generation and ensure a clear plan for building out transmission.

“Put simply, industry cannot implement new processes or equipment that use electricity instead of fossil fuels without confidence the electricity will be available, reliable and cost competitive.”

Ms Tomkinson welcomed the review’s support for carbon capture, usage and storage (CCUS), a key technology to address hard to abate emissions.

“While renewable energy has a major role to play, some industrial emissions cannot be abated by electrification,” Ms Tomkinson said.

“In those cases, CCUS may be needed to remove emissions until alternative low emission fuel sources or direct abatement technology becomes commercially available.”

CME notes the review recommends expanding the scope of the Safeguard Mechanism.

“Any changes must include robust consultation with industry to ensure Australia remains a competitive investment destination.

“The Climate Change Authority has provided a wide-ranging blueprint for Australia’s energy transition, and I look forward to engaging with government throughout the development of the net zero plan” Ms Tomkinson said.

“That includes speeding up planning and approvals to attract investment, standing up strategic industrial areas, drastically accelerating the rollout of renewable energy generation and improving the consistency of carbon pricing.”

<ENDS>

Media contact: Josh Zimmerman j.zimmerman@cmewa.com

0404 947 719

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CME Chief Executive Rebecca Tomkinson said governments needed to deliver on promises to streamline regulatory approvals and provide the policy and fiscal certainty that would improve Australia’s competitive position. 

“Targeted and evidence-based government support for the nickel and lithium sectors in the near-term makes sense given the significance of these industries to local employment, the economy and our national strategic interests,” Ms Tomkinson said. 

“We have said before that deferred royalty payments would likely be the most commercially impactful and administratively simple support measure the WA Government could enact. This should be considered in the immediate term alongside possible measures at a federal level such as a production tax credit. 

“At today’s roundtables, we’ll be articulating a range of initiatives that the State and Federal Governments can implement to keep the WA resources sector consistently competitive across all the commodities we produce. 

“We’re seeking actions and results from today, so all options should be considered.” 

Ms Tomkinson said a lack of efficiency, timeliness and certainty in approvals remained a key barrier that the State and Federal Governments could remove. She added that competitive fiscal settings and industrial relations reforms that delivered higher productivity were within the Federal Government’s control. 

“The Government can use today’s collective discussions as a catalyst to move forward on initiatives that reduce financing, capital or operating costs such as low-cost funding, capital grants or production tax credits,” she said. 

“The Australian Government also has an opportunity to work with our trading partners to support the development of price and ESG transparency in critical and battery minerals markets. 

“At the state level, the provision of turnkey strategic industrial areas and other common user infrastructure, including low emissions, reliable and cost-competitive energy, can drive economies of scale and reduce operating costs. 

“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.” 

Ms Tomkinson added that the Australian Critical Minerals Strategy 2023-2030 remained unclear as to its practical support for the immediate and longer-term sustainability and growth of the critical minerals sector. 

“We’re still waiting on the detail behind the critical minerals list and the strategic materials list to determine the benefits in the near, mid or longer-term,” she said. 

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CME understands the WA Government will approve the company’s updated five-year Mining and Management Program under its State Agreement, subject to a range of control measures being deployed.

CME said the assurances provided by Alcoa – such as moving operations further away from drinking water sources, limiting vegetation clearing and doubling its environmental rehabilitation program – demonstrated its continued commitment to maintaining public confidence. 

Alcoa and its local workforce number in the thousands and have been a vital part of WA’s south-west region for 60 years, providing jobs and supporting the state economy and numerous local small businesses during that time.

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