Skip to main content

Funding and tax incentives for Australian critical minerals

ยท 300 words, 2 min read

The Australian Federal Budget 2024-25 confirms previously announced investments in critical mineral projects through a range of grants, concessional loans and a newly announced Production Tax Credit.

Resources Minister Madeleine King announced the “ten per cent production tax credit totalling $7 billion over the decade for all 31 critical minerals to drive critical minerals processing in Australia. This will enable us to realise the full value of our natural resources and maximise benefits for our nation.”

The government is also providing significant direct financial support, totalling over $1.4 billion, to companies developing critical minerals projects across Australia. This includes rare earth mining and processing, high-purity alumina production, and graphite mining.

A cornerstone of this investment is an $840 million package of loans and grants to Arafura Rare Earths for the development of its Nolans Project in the Northern Territory. This project will encompass a rare earth mine and refinery, significantly increasing Australia's capacity to produce rare earth elements essential for high-tech applications like electric vehicles and wind turbines.

In Queensland, Gladstone-based Alpha HPA will receive up to $200 million in funds to establish a high-purity alumina processing facility. High-purity alumina is a critical ingredient in the manufacturing of LED lights, semiconductors, and lithium-ion batteries, all of which are integral to the transition towards a cleaner and more technologically advanced future.

Renascor Resources will receive up to $185 million in loans to expedite the development of its Siviour Graphite Project in South Australia. This project will ensure a reliable domestic source of graphite, a key component in the production of lithium-ion batteries, crucial for electric vehicles and renewable energy storage.

These investments, drawn from the government's Critical Minerals Facility and the Northern Australia Infrastructure Facility, signify a firm commitment to supporting the growth of the critical minerals sector and strengthening Australia’s position in the global supply chain.

The Government will commence a formal statutory review of the Northern Australia Infrastructure Fund in 2024-25.

Read AusIMM's full 2024-25 budget recap here

Want to continue the conversation? Learn more AusIMM's Critical Minerals Conference, Brisbane 26-28 August, and discuss the latest developments in the sector with experts and industry leaders. 

Our site uses cookies

We use these to improve your browser experience. By continuing to use the website you agree to the use of cookies.