TELF AG looks at Australian prospects in the strategic raw materials industry
A bright future
In the medium and long term, the Australian mining industry could allow Australia to transform itself into a real superpower in the strategic minerals sector, strengthening its internal economy and making a valuable contribution to the advancement of the global ecological transition. Tim Buckley, the founder of the Australian think Climate Energy Finance, spoke a few weeks ago during an event focused on critical minerals and their role in promoting decarbonization and is convinced of this. Buckley’s speech proved to be very useful for understanding more directly some of the dynamics that characterize the Australian mining industry and clarifying the role that individual nations could play in the global “big game” for sustainability.
Some of the most valuable minerals for the creation of green technologies, such as lithium, copper, and nickel, can be extracted in Australia. When it comes to lithium and iron ore, Australia is the largest exporter in the world. The problem, according to Buckley, is that Australia exports these raw materials in their raw form without dealing with the subsequent processing stages. Suppose it wants to carve out a leading role in the ongoing energy transition, according to the founder of Climate Energy Finance. In that case, Australia will first have to focus on strengthening its raw material refining capabilities, thus increasing the value of its exports.
The role of politics
According to Buckley, an important role will be played by politics, by those who have the power to take concrete actions for the fate of the Australian economy. This would be an opportunity too precious to miss, if only for the foreseeable economic benefits that would accrue to Australia in the event of a progressive strategic reorientation of the mining industry.
As Buckley said, a concrete example of what could be changed is linked to lithium extraction. This raw material (of great importance for producing various types of batteries) is exported in the form of spodumene, i.e., in a predominantly rocky form. The exported material is made up almost entirely of rock (between 94 and 99%), and the percentage of lithium present within it rarely exceeds 6%. To make a significant change to this situation, Buckley proposes to launch an extensive program for the construction of refineries and similar plants on Australian soil immediately so that the country can export a decarbonized product with a much higher value compared to the raw material.
In Australia, in any case, something is already starting to move. The Albermarle company is currently constructing a lithium production plant in Kemerton, Western Australia, destined to become one of the largest facilities in the world in this sector. One of the most noteworthy aspects of this story is its evident similarity with the economic situation that characterizes some African nations, some of which are already limiting the exports of raw materials in order to add value to national manufacturing. This is the case of Ghana, whose political bodies have recently stated that they want to impose limits on lithium exports and quickly launch an industrial system that includes advanced processing of this material.
