Report: Australia's Clean Energy Ambitions Hinge on More Mining Investment

The Minerals Council of Australia (MCA) has released a new report focused on strategies the country can use to integrate its mining industry into fast-growing and high-demand global supply chains.

The document underlines that Australia's federal government is keen to see the nation become a renewable energy superpower and "move up the value chain" when it comes to clean energy technologies.

“To achieve this ambition, it is critical to recognise that there will be no downstream processing or moving along the value chain without a strong vibrant mining sector. It’s where it all starts," the MCA states.

With global electricity expected to double by 2050, the organisation also points out that all types of energy — including renewables, batteries, coal, nuclear and hydrogen — will be required to meet future needs.

Keeping those points in mind, the MCA shares 10 recommendations that it believes can help Australia leverage its comparative advantage in mining and minerals processing. They are as follows:

• Retain the fuel tax credit scheme and commit to no new or additional taxes
• Ensure least-cost abatement under the safeguard mechanism
• Increase efficiencies of mining assessments and environmental approvals
• Put productivity at the heart of workplace relations and reverse adverse changes
• Improve community benefits and liveability in mining’s host communities
• Mining is not just “dig and ship”
• Level the playing field for generators to deliver least-cost, secure electricity
• Invest in common user mobile assay laboratories for quick testing of exploration samples
• Integrate Australian mining into global clean technology supply chains
• Activate and resource a single front-door service for project investors
• Deliver and fund a common user infrastructure plan within two years

In the report's conclusion, the MCA emphasises that mining investment has stalled in Australia. This issue will need to be resolved if Australia is to become an important global supplier of critical minerals.

"The problem lies in Australia’s investment environment. Committing to mining projects involves considerable risk to capital. Commodity price volatility, a high cost base and growing uncertainty make investment decisions highly sensitive to policy setting," it explains, adding that good policies and government initiatives will be key to improving the situation.

"(This) investment strategy gives Australia the best chance of successfully responding to industry policies in other countries by ensuring mining remains a vital pillar of our nation’s prosperity, now and into the future," the MCA states.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.