Resources Minister Madeleine King has outlined plans for the implementation of the government’s Critical Minerals Strategic Reserve, saying the reserve is set to be operational by the end of the year.
Speaking at a press conference this week, King said the government plans to introduce legislation this year to make the reserve a reality, with a key element being the expansion of Export Finance Australia’s (EFA) powers. Oversight will sit with the Department of Industry, Science and Resources and the Resources Minister.
“The new powers of the EFA will enable offtake agreements with fixed or floating prices, trading in forward offtake agreements and intermediary demand and supply aggregation, as well as stockpiling and contracts for difference,” King said.
When asked about volume and price targets for the reserve, King said the low volumes associated with some critical minerals meant demand factors would play a more significant role.
“Well, all of these products are low volume, so we won’t target volume specifically. It will be about demand and what can be produced as well,” she said.
“We will be talking with international partners, and we know other countries are doing their own audits of what they expect their needs will be, if they haven’t already done so.”
King confirmed the first minerals covered by the reserve will be antimony, gallium and rare earth elements, selected for their importance to clean energy technologies and advanced military and defence applications.
She said one of the reserve’s key aims would be to address the volatility of critical minerals markets by providing greater price stability and investment certainty. This could include setting minimum prices to unlock projects, while still allowing Australian taxpayers to benefit if prices rise in the future.
King said the establishment of the reserve marked a significant step in growing Australia’s critical minerals sector, with both extraction and processing targeted for development.
“This is a challenging market, but the level of global need for alternative supply chains gives me confidence,” she said.
While more work remains before the reserve becomes operational, King said the government would continue consulting closely with industry and international partners on its design.
“We’ll continue to engage very actively with industry, but also with our international partners who we know want to be involved in Australia’s world-leading initiative to create secure supply chains,” she said.
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