The Federal Government has released the 2023 Intergenerational Report, showing that Australia’s mining sector is set to benefit from the critical minerals push.
The Intergenerational Report is a “big picture view” of Australia’s economy over the next 40 years, projecting the outlook of the economy and the Australian Government’s budget to 2062-63.
Climate change and the necessity of net-zero emissions was a big focus in the report.
“Australia is in a strong position to benefit with some of the world’s largest reserves of critical minerals such as lithium, cobalt and rare earth elements, which are key inputs to clean energy technologies,” the report said.
“With abundant wind, sun and open spaces Australia also has the potential to generate green energy more cheaply than many countries.”
The report also said that the country’s mining sector is expected to evolve, as the abundance of critical minerals becomes a key player in the world’s shift to net-zero. However, the report also warns that coal demand is set to drop.
“Global demand for Australian thermal coal exports are expected to decline as our trading partners move toward net-zero emissions,” it said.
“However, Australia has some of the world’s largest reserves of critical minerals such as lithium, cobalt and rare earth elements. These, in combination with traditional strengths such as iron and aluminium are some of the essential ingredients in global emissions reduction as inputs for electric vehicles, batteries and renewable energy generation technologies.”