Federal Government’s critical minerals list gets a reshuffle with a secondary ‘strategic’ bundle added

The Federal Government has updated its critical minerals list, including a surprise addition, and, in a boon for a plethora of WA miners, will up its support for other battery metals developments. Heading into 2024 the Government will knock helium from its critical minerals list and add rare earths elements molybdenum, selenium and tellurium, as well as fluorine and arsenic. Helium — used predominately in MRI machines — has been removed from critical mineral list after the Government said only a few natural gas fields in the world have enough of the element to make separating and producing it profitable. The only helium production plant in the southern hemisphere, in Darwin and operated by Santos, was last week switched off after its gas supply was exhausted. The majority of helium supply comes from the United States and Qatar. Meanwhile, arsenic could be seen as a surprise addition to the critical minerals list. It is a highly poisonous chemical element typically seen as a hindrance by miners, but the Government has parachuted it into the list thanks its use in the manufacture of semiconductors and defence applications. Arsenic is also prevalent throughout nickel ore in the Goldfields region, where the majority of WA’s nickel is unearthed. Miners with nickel ore containing high levels of arsenic typically cop a hefty penalty at the smelter. Minerals listed as a critical mineral are eligible for government financing, including access to the specialised $4 billion critical minerals fund, which includes low interest loans to develop projects to mine these minerals. The critical minerals list also includes lithium, cobalt, graphite and manganese. The Government said it would add another list to its scope — a strategic materials list — which are commodities important in the “global transition to net zero and broader strategic applications, but their supply chains are not currently vulnerable to disruption”. The strategic materials list encompasses aluminium, copper, nickel, phosphorus, tin and zinc. Commodities on the strategic materials list will have increased exposure to access around $40b of Government loans, including the Export Finance Australia Commercial Account and the Northern Australia Infrastructure Facility. The critical minerals reshuffle and addition of a new list could be a much needed tailwind for WA’s struggling nickel miners, who have been hit hard by collapsing prices for the commodity as Indonesia rapidly brings on more supply. On Thursday nickel producer Panoramic Resources was placed into the hands of administrators amid the challenging environment.