Australia’s gov. set to allocate $585m in loans to 2 mining companies
Australia’s government is set to allocate a total of A$585 million ($375 million) in loans to two mining companies, aiming to foster a domestic industry for metals and minerals crucial to the energy transition, Bloomberg reported on Wednesday.
This financial support is drawn from an A$4 billion funding facility established in 2021 and subsequently expanded, representing Canberra’s strategic response to mitigate China’s dominance over the supply chains of essential materials required for global decarbonisation efforts.
Alpha HPA Ltd. is slated to receive an A$400 million loan to establish Australia’s inaugural high-purity alumina processing facility in Queensland, as announced by the government. Additionally, Renascor Resources Ltd. will obtain A$185 million to expedite the development of a graphite mine and processing plant in South Australia, with the loan initially endorsed in February 2022.
Following the news, Renascor shares surged by up to 33 per cent in Sydney, while Alpha HPA experienced a rise of as much as 15 per cent. Notably, China currently holds the title of the largest graphite producer, a mineral essential for lithium-ion battery anodes, and Renascor’s Siviour project marks Australia’s maiden venture into this domain, boasting the world’s second-largest confirmed deposit, according to the company.
Australia has been intensifying its focus on the critical minerals sector in recent years, leveraging its abundant domestic reserves of these materials, pivotal in various applications ranging from electric vehicle batteries to solar panels and military equipment.
Prime Minister Anthony Albanese underscored the significance of these two critical minerals projects in bolstering secure employment opportunities in manufacturing and facilitating the transition to clean, dependable energy, as stated in the official release.
Albanese further disclosed plans for introducing a Future Made in Australia Act, akin to the Biden administration’s Inflation Reduction Act, aimed at fortifying the nation’s green manufacturing and mining sectors and enhancing competitiveness amidst escalating government subsidies in other global economies.
