Australia approves $34 mln in funding for critical minerals projects

EQ Resources

16/09/2022 02:39

Sept 16 (Reuters) - Australia on Friday approved A$50
million ($34 million) of grants to six critical minerals
projects to accelerate the development of the sector as part of
its efforts to reach net zero emission targets by 2050.
    Australia, the world's biggest producer of rare earths
outside of China, has been pouring money into diversifying
procurement of critical minerals amid souring relations between
Western governments and Beijing.  urn:newsml:reuters.com:*:nL3N2VJ08T
    "The grants will accelerate early and mid-stage projects,
driving new investment in our processing and manufacturing
capabilities as we develop our critical minerals sector,"
Resources Minister Madeleine King said in a statement.
    If the projects are successful in scaling up to full
production, they will help diversify global critical minerals
supply chains and ease Australia's transition to low-emissions
technology, King said.
    Australia has vast reserves of critical minerals, including
lithium and rare earths, which are used in satellites, lasers
and electric-vehicle batteries. 
    They are essential to smart technology and clean energy but
tricky to mine, process and market, which can make it difficult
for developers to line up funding.     
    Friday's move by the Labor government comes after A$2.5
billion in loans and funding commitments were announced by the
former conservative coalition in the months leading up to the
May federal election.  urn:newsml:reuters.com:*:nL1N2QU0AA
    Alpha HPA Ltd  A4N.AX , Cobalt Blue Holdings Ltd  COB.AX ,
EQ Resources Ltd  EQR.AX , Global Advanced Metals Pty Ltd, Lava
Blue and Mineral Commodities Ltd  MRC.AX  will receive the
funds, King said.   
    Alpha HPA and Cobalt Blue will get about A$15 million each
to set up an ultra-pure aluminium chemical plant and a cobalt
project, respectively, which will produce material for
batteries.
    Projects by the other companies include a tantalum recovery
plant, an electric battery grade graphite business and
reactivating an open pit for tungsten mining.
    
($1 = 1.4925 Australian dollars)

 (Reporting by Lewis Jackson and Renju Jose; Editing by Gerry
Doyle)
 ((lewis.jackson@thomsonreuters.com; Reuters Messaging:
@lewjackk))