Mineral exploration expenditure in Tasmania has hit a new record, with the latest Australian Bureau of Statistics (ABS) figures showing $43.1 million was spent in the 2023 financial year.
The jump marks a 31 per cent boost in mineral exploration in the state, which Tasmanian minister for resources Felix Ellis said is the highest level on record.
“The mining and mineral processing sector is a key pillar of the economy and contributes more than $2.8 billion a year in exports and supports more than 5800 jobs,” he said.
“We know the world will need the key and critical minerals that Tasmania has to help power the global shift to renewable energy and to support defence manufacturing.”
Ellis pointed to programs like the Tasmanian Government’s exploration drilling grant initiative (EDGI) and geoscience initiative as examples of its commitment to growth in the industry.
“The EDGI grants provide co-funding for greenfield targets that may lead to the discovery of Tasmania’s next new mine,” he said.
“Since the program began, there have been eight rounds released, with funding provided facilitating more than 16,000 meters of drilling.
“It is pleasing to see that the greenfield exploration investment of $5.3 million is the highest in a decade.
“The $2 million geoscience initiative is providing new data to underpin and de-risk the next generation of mineral exploration.”
Resource production is ramping up in Tasmania with a recent feasibility study between the Tasmanian Government and the Rotterdam Port Authority marking the state as a potential green hydrogen powerhouse.
The state hopes to begin exporting green hydrogen by 2030, with the study confirming conditions in the island State for production, domestic use and export are world-class.
Renascor Resources’ Siviour graphite project is located on the Eyre Peninsula, South Australia.
With graphite demand outstripping supply, the market is bracing for a 777,000-tonne per year deficit by 2030. But movement in the mining sector – both traditional and innovative – may be set to change this.
One of the key raw materials in the green energy transition is graphite, but while Australia is a key producer of other battery metals such as lithium, nickel and manganese, there are no active Australian graphite mining operations.
Graphite is used as an input for anodes – one of two electrodes that make up a lithium-ion battery, with cathodes – made up of metals such as lithium, nickel and cobalt – the other electrode.
By 2030, demand for graphite is expected to hit four million tonnes (Mt) per year, roughly 75 per cent of which is for the lithium-ion battery market. Currently, the bulk majority of graphite comes from China.
The highest profile Australian-focused company in this sphere is Renascor Resources, which owns the Siviour battery anode material project in SA.
Siviour holds the second largest graphite reserve in the world, and the largest outside of Africa.
As recently as last week, the Renascor increased Siviour’s mineral resource by 25 per cent to an impressive 123.6Mt at 6.9 per cent total graphitic carbon (TGC), for 8.5Mt of contained graphite.
The company predicts the mine, when operational, to produce up to 150,000 tonnes per year for a 40-year life of mine.
“As the demand for graphite grows, long-life, high quality sources of new supply like Siviour are becoming increasingly important to the developing lithium-ion battery supply chain,” Renascor managing director David Christensen said.
In July this year, the company signed a Memorandum of Understanding with Mitsubishi Checmical Corporation for the potential sale of its graphite products from Siviour to the Japanese giant.
Founded in 2018, ASX-listed International Graphite was built on the premise that the industry would need more downstream processing capacity outside of China.
The company is developing a mine-to-market business model, whereby raw materials would be mined from its Springdale project in WA and fed into a downstream processing plant in the emerging renewable energy hub of Collie.
International Graphite similarly announced a significant increase to its graphite deposit at Springdale, which is the second largest in Australia behind Siviour.
The deposit grew from 15.3Mt to 49.3Mt at 6.5 per cent TCG.
Despite the 27 per cent increase, International Graphite managing director Andrew Worland said the company had only scratched the surface at Springdale.
“So far, exploration has been limited to approximately 10 per cent of the Springdale tenement areas. More than 80 per cent of the aeromagnetic anomalies on a portion of our tenure has yet to be tested,” Worland said.
Outside of Australia, interesting developments have been made.
New Zealand-based battery material company CarbonSpace recently secured an $18 million investment from a number of partners to commercialise production of what it calls ‘biographite’.
Biographite is produced from forestry and timber industry by-products, meaning a significant reduction in carbon emissions.
“Biographite has a carbon negative footprint, saving up to 30 tonnes of CO2 emissions per tonne of material compared to synthetic or mined graphite,” the company said.
“This investment represents a strong statement of support for sustainable sourcing of battery materials for global decarbonisation. With these partnerships, CarbonScape is another step closer to bringing biographite to market on a commercial scale.”
Renascor Resources’ Siviour graphite project is located on the Eyre Peninsula, South Australia.
With graphite demand outstripping supply, the market is bracing for a 777,000-tonne per year deficit by 2030. But movement in the mining sector – both traditional and innovative – may be set to change this.
One of the key raw materials in the green energy transition is graphite, but while Australia is a key producer of other battery metals such as lithium, nickel and manganese, there are no active Australian graphite mining operations.
Graphite is used as an input for anodes – one of two electrodes that make up a lithium-ion battery, with cathodes – made up of metals such as lithium, nickel and cobalt – the other electrode.
By 2030, demand for graphite is expected to hit four million tonnes (Mt) per year, roughly 75 per cent of which is for the lithium-ion battery market. Currently, the bulk majority of graphite comes from China.
The highest profile Australian-focused company in this sphere is Renascor Resources, which owns the Siviour battery anode material project in SA.
Siviour holds the second largest graphite reserve in the world, and the largest outside of Africa.
As recently as last week, the Renascor increased Siviour’s mineral resource by 25 per cent to an impressive 123.6Mt at 6.9 per cent total graphitic carbon (TGC), for 8.5Mt of contained graphite.
The company predicts the mine, when operational, to produce up to 150,000 tonnes per year for a 40-year life of mine.
“As the demand for graphite grows, long-life, high quality sources of new supply like Siviour are becoming increasingly important to the developing lithium-ion battery supply chain,” Renascor managing director David Christensen said.
In July this year, the company signed a Memorandum of Understanding with Mitsubishi Checmical Corporation for the potential sale of its graphite products from Siviour to the Japanese giant.
Founded in 2018, ASX-listed International Graphite was built on the premise that the industry would need more downstream processing capacity outside of China.
The company is developing a mine-to-market business model, whereby raw materials would be mined from its Springdale project in WA and fed into a downstream processing plant in the emerging renewable energy hub of Collie.
International Graphite similarly announced a significant increase to its graphite deposit at Springdale, which is the second largest in Australia behind Siviour.
The deposit grew from 15.3Mt to 49.3Mt at 6.5 per cent TCG.
Despite the 27 per cent increase, International Graphite managing director Andrew Worland said the company had only scratched the surface at Springdale.
“So far, exploration has been limited to approximately 10 per cent of the Springdale tenement areas. More than 80 per cent of the aeromagnetic anomalies on a portion of our tenure has yet to be tested,” Worland said.
Outside of Australia, interesting developments have been made.
New Zealand-based battery material company CarbonSpace recently secured an $18 million investment from a number of partners to commercialise production of what it calls ‘biographite’.
Biographite is produced from forestry and timber industry by-products, meaning a significant reduction in carbon emissions.
“Biographite has a carbon negative footprint, saving up to 30 tonnes of CO2 emissions per tonne of material compared to synthetic or mined graphite,” the company said.
“This investment represents a strong statement of support for sustainable sourcing of battery materials for global decarbonisation. With these partnerships, CarbonScape is another step closer to bringing biographite to market on a commercial scale.”
The 2023-24 NSW Budget has been released, reflecting the Government’s commitment to the mining and resources sector.
The Budget includes $5.2 million to establish Future Jobs and Investment Authorities. This will also assist coal-producing regions to develop new industries and economic opportunities as the state pushes for renewable energy.
Geological surveying has also been included in the Budget, with $27.5 million allocated to encourage critical mineral exploration in the state. It is hoped that the data will define areas of mineral or energy potential.
A total of $142.5 million has been allocated across the Natural Resources portfolio, including $113 million over four years for mine work health and safety. Legacy mine risk reduction has been allocated $48.5 million.
NSW introduced its new Critical Minerals Strategy earlier this month to provide the framework for the critical minerals and high-tech metals mining industry while providing certainty and direction for the growing industry.
The new document will include a sharper focus on domestic manufacturing, skills and training opportunities.
“I’m excited by the opportunities created by critical minerals in NSW. The new strategy will ensure the state is able to best realise the gains of the next mining boom,” NSW Minister for Natural Resources Courtney Houssos said.
“NSW is uniquely positioned to support global supply of critical minerals with our diverse mix of critical mineral and high-tech metal deposits and capacity to promote domestic processing and manufacturing.”
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.”
The Western Australian Government has released its mineral and petroleum resources development strategy, prioritising six points including regional areas, exploration and streamlined approvals.
The first strategic priority is to cement the state as a leading global destination for exploration investment.
The report stated this will be achieved through the Government’s Exploration Incentive Scheme (EIS) which has generated $31 million in benefits to the State for every $1 million invested in the scheme.
Minister for Mines and Petroleum Bill Johnston said the Government must tend to several issues to encourage further investment.
“Central to this strategy is promoting our comparative advantages and investment opportunities, catering for current and future skills gaps, facilitating access to infrastructure, and investing in research and development,” Johnston said.
Research and development are discussed in the report’s fourth strategic priority: an evolving industry.
The report acknowledges the industry’s shift towards different commodities and parts of the supply chain, such as precious metals refinery.
The report uses Alcoa and South32’s alumina operations, IGO/Tianqi Lithium’s Kwinana facility, and BHP’s Nickel West battery metal supply as examples of the state’s ability to facilitate future-focussed mining and minerals operations.
“We expect demand for WA’s minerals to continue to grow, driven by the global transition to a low-carbon future and an increasing demand for electric vehicles,” Johnston said.
A major push to effectively regulate the industry was also a feature of the report, with multiple strategic priorities relying on the state doing so.
“The State Government recognises that an efficient and effective regulatory framework is essential for providing industry with the certainty required to make investment decisions, and is committed to support measures to streamline regulation while not compromising on environmental and social standards,” the report stated.
The most recent of the Government’s efforts in this area came in the form of Streamline WA which was launched in 2018 to enable easier business across the state.
The report also gave examples of major operations given the go-ahead in recent years.
“The ability of Western Australia’s regulatory system to allow for the expeditious approval of new mining operations has been demonstrated in recent years through the development of mines including IGO Limited’s Nova nickel-copper-cobalt project and Beacon Minerals Limited’s Jaurdi gold project,” the report stated.
Western Australian Premier Mark McGowan said the opportunities were significant for the State’s resources sector and wider economy.
“The opportunity to continue to grow and diversify our resources sector as a significant contributor to global advancements in the digital age, and the shift to reducing greenhouse gas emissions, are immense, and are expected to continue to provide outstanding economic and social benefits to the community well into the future,” McGowan said.
To read the report and learn more about WA’s resources strategy, click here.
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Five Australian mining companies have been named among the world’s Top 40 miners in Pricewaterhouse Coopers’ (PwC) annual Mine 2021 report, with early forecasts suggesting the industry will record the second highest net profits in 18 years.
According to PwC’s 18th annual report, BHP and Rio Tinto retained their positions as first and second on the list of the Top 40 global mining companies, while Fortescue Metals Group rose six spots on the list to fourth.
Newcrest Mining fell four spots from 14th to 18th, while South32 came in at 35th on the list, down from 28th last year.
According to PwC, based on production and commodity price forecasts, group revenue (excluding trading) for the Top 40 is expected to rise to US$700 billion ($903 billion), up 29 per cent.
BHP, Rio Tinto and Fortescue have distributed their highest ever dividends for the February 2021 reporting period when iron ore prices were lower, according to the report.
PwC global mining leader Paul Bendall said the Top 40 miners find themselves in an enviable position.
“Just as the world pivots to a more sustainable future reliant on a lower-carbon economy, the miners have a chance to think strategically towards a decarbonisation future and ESG agenda, and reap the long-term benefits,” he said.
“One such way is gaining access to materials necessary for customers to realise their bold net-zero targets.”
The report identified that companies with higher ESG ratings returned an average total shareholder return of 34 per cent over the past three years – 10 per cent higher than the general market index.
Bendall said there was undeniable value in top miners taking ESG seriously.
“This isn’t just about doing the right thing and appeasing shareholders, but there are long-term value creation opportunities at the ready for those who bake ESG into their core operating strategies, such as improved access to capital, and riding the wave of an ever-increasing thirst for low-carbon products,” he said.
“The top 40 mining companies have enjoyed tremendous growth in the face of challenging economic conditions, which begs the question: what will they do with their near record levels of free cash flow? There exists a massive opportunity to make a big, bold pivot towards the future – and reap the benefits of doing so.”
Bendall said the next challenge is to shift from short-term adaptation to long-term transformation.
“Miners need to think about how they’ll succeed in a world undergoing profound change due to the pandemic. These decisions will shape the future of the sector for decades to come,” he said.
More than 40 new proposals have been added to the national project pipeline, now worth $59 billion.
Infrastructure Australia has released its priority list for 2021, with a record number of new investments included across the country.
Forty-four new proposals have been added to the project pipeline, now worth $59 billion, while 10 projects have been moved off the list and into the construction phase.
Infrastructure Australia chief executive Romilly Madew said regional investment became a focus for the list this year.
“More than half of the investment opportunities on the 2021 Priority List benefit our regional communities, as we continue to draw focus on equitable service delivery and investments that will deliver affordable and quality infrastructure services for all Australians, regardless of where they live,” she said.
Among the 44 new projects to make the List were the Parkes Bypass to connect Melbourne and Brisbane, Parramatta’s outer ring road capacity, and Melbourne to Adelaide freight rail improvements.
With 180 projects on the list, chief executive officer for Cement Concrete & Aggregates Australia (CCAA) Ken Slattery said there’s a bottleneck between the government’s words and its capacity to act on them.
“There is a concern that the list is fine, but how such a record level of investment actually gets translated into constructed projects is unclear,” Slattery said.
Chief executive officer of the Australian Constructors Association (ACA) Jon Davies said the list plays a key role in supporting the nation up from its knees, post-COVID-19.
“With this record number of new investment opportunities, all levels of government need to work with industry to ensure that projects are delivered in a timely and efficient manner that maximises the social and economic benefits of the government’s investment,” Davies said.
“This will be vital in a post COVID-19 world with high levels of government debt but no less of a requirement to construct productivity enhancing infrastructure.”
Slattery agreed, if the industry could survive COVID, it’s exactly what the nation needs to renew itself in the coming years.
“One of the things we’ve seen is a strong and viable construction sector represents the backbone of the economy and the fact the construction industry has been able to operate throughout [COVID-19] has meant there has been a strong level of support for businesses and employees,” Slattery said.
“We’re talking something like 1.1 million people employed by the building and construction sector who stayed in work and continue to pay taxes and continue to support the economy more broadly, which is vitally important.”
Slattery said the CCAA was pleased its direct consultation with Infrastructure Australia was seen in the list’s considerations.
“We are encouraged by Infrastructure Australia recognising the role of the supply chain in all of this, which is a relatively recent development,” Slattery said.
“In the past we’ve simply seen that big projects were identified, supported and pursued without any real thought on where the materials were going to come from.
“We’re of the view that Infrastructure Australia really are paying due consideration to that. What we need is that to translate in approval processes and approval times.”
Included in the 10 items to leave the list for the construction phases were Nowra Bridge (NSW), the M1 and Bruce Highway works (Queensland), and METRONET works (WA).
Amid growing concerns over Victoria’s COVID-19 situation, the Federal and State Governments have announced a $525 million joint investment for further infrastructure.
The package will deliver “shovel-ready” infrastructure projects and road safety upgrades across Victoria. A total $320 million investment has been provided by the Federal Government under the package, and the Victorian Government will spend $205.5 million.
The Federal Government recently announced infrastructure joint investments with other states across the country.
“Partnering with State and Territory Governments to invest in more infrastructure projects across Australia is a key part of our JobMaker plan to rebuild our economy and create more jobs,” the Prime Minister Scott Morrison said. “This funding injection means we have brought forward or provided additional funding in excess of $830 million to Victoria in the past eight months.
“This package builds on the fast tracking of $514 million for infrastructure in Victoria which we announced last November, locking in priority upgrades that will bust congestion, increase productivity, improve safety, and boost jobs at a time we need it most.”
Premier Daniel Andrews said the projects will help fortify the state’s construction industry.
“This partnership with the Commonwealth will build the projects regional communities need and help keep our construction industry strong – which is more important than ever right now as we rebuild from the pandemic,” he said.
“This package is on top of our $2.7 billion we’re investing in new projects across the state to get shovels in the ground – and boots in the mud – to kickstart our economy.”
Projects to lift Australia’s economy
The Federal Government has also announced it will fast-track 15 critical infrastructure projects across the country in response to the economic turmoil wreaked by COVID-19.
Projects such as Inland Rail from Melbourne to Brisbane, the Marinus Link between Tasmania and Victoria, the Olympic Dam extension in South Australia, numerous road, rail and iron ore projects in Western Australia, and emergency town water projects in New South Wales and Snowy 2.0 have all been included on the Federal Government’s “priority list”.
The priority projects will form a five-year package worth $1.5 billion.
“Joint assessment teams will work on accelerating these projects worth more than $72 billion in public and private investment,” Morrison said last month. “These are projects that will support over 66,000 direct and indirect jobs.”
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