Labor pledges $475 million towards Western Australian rare earths refinery

The Albanese Labor government has revealed an additional $475 million for the development of the Eneabba Rare Earths Refinery project in Western Australia (WA).

This refinery is set to become Australia’s first integrated rare earths facility, providing 900 construction jobs and 250 secure, well-paid positions upon completion.

Australian company Iluka Resources will lead the project, with support from the government’s $4 billion Critical Minerals Facility (CMF) via Export Finance Australia.

Prime Minister Anthony Albanese emphasized that this investment will enable the resources sector to contribute to a robust economy and create good, well-paying jobs.

The government states that the refinery will be part of a global rare earth supply chain, unlocking Australian deposits of critical minerals necessary for technologies such as electric vehicles, wind turbines, and mobile phones.

Democratic governments in recent years have aimed to reduce reliance on Chinese supply chains.

“Our government is dedicated to becoming a renewable energy powerhouse, not only to address climate change but also to seize the opportunity to create high-paying, secure jobs for Australians,” added Don Farrell, Minister for Trade and Tourism.

Government Carefully Managing Relationship With Mining Industry

Despite the government’s emphasis on renewable energy and critical minerals, the mining industry has clashed with the Labor government.

This announcement follows Prime Minister Albanese dismissing a deal between Tanya Plibersek and the Greens to establish a federal environmental protection agency, in anticipation of upcoming WA elections.

West Australian Premier Roger Cook has openly criticized the proposed deal, citing its potential economic impact on the state’s thriving mining sector.

The Minerals Council of Australia (MCA) has also criticized policies like Labor’s workplace laws while advocating for lifting the ban on nuclear energy.

“Unlocking value along the entire materials supply chain requires a productive workplace system,” stated an MCA report.

Opposition Leader Peter Dutton has pledged significant reforms, including reducing project approval timelines by half.

“I aim to supercharge our mining sector to navigate the current economic challenges and usher in a new era of prosperity,” said Dutton, promising to expedite major projects and simplify workplace laws.