The Federal Government has released new details of its $1.2 billion Critical Minerals Strategic Reserve, aimed at securing reliable supplies of key minerals vital to Australia’s economy, national security and Future Made in Australia ambitions.
Treasurer Jim Chalmers is expected to brief Australia’s allies and trading partners on the initiative during meetings in Washington DC this week, following engagement by minister for resources Madeleine King at G7+ meetings in Toronto late last year.
The Strategic Reserve will initially focus on antimony, gallium and rare earth elements, which are critical inputs for clean energy technologies, high-technology manufacturing and advanced military equipment.
Rare earths are used in high-performance permanent magnets found in applications ranging from fighter jets to MRI machines, while antimony is used in batteries, night vision equipment and flame-retardant materials. Gallium is a key ingredient in advanced semiconductors used in radar systems and telecommunications.
Under the model, the Reserve will operate by securing rights to minerals produced in Australia and on-selling those rights to meet demand, providing additional support to domestic projects while strengthening supply chains for international partners.
The funding package includes $1 billion for transactions through the expanded $5 billion Critical Minerals Facility, which provides government-backed loans and equity support. A further $185 million has been allocated for selective stockpiling and implementation costs.
Treasurer Jim Chalmers said the Reserve was designed to protect Australia’s long-term economic interests in an uncertain global environment.
“In a rapidly changing world, the Strategic Reserve is all about safeguarding Australia’s future prosperity,” Chalmers said.
“Ensuring we have a reliable reserve of these critical resources will strengthen supply chains and help to stabilise critical minerals markets.”
Minister for resources Madeleine King said the initiative would support Australian mining and processing projects while creating jobs and boosting investment.
“The Strategic Reserve will provide vital support for Australian critical minerals mining and processing projects, creating jobs and ensuring Australia is at the centre of efforts to build stable and reliable supply chains for our international partners,” King said.
The Government said enabling legislation would be introduced this year to give Export Finance Australia additional powers to support the Reserve, with transactions led by the Department of Industry, Science and Resources in partnership with Export Finance Australia.
