Bush Summit: How Victoria could unearth a $200bn treasure trove in critical minerals
Regional hotspots that are home to some of the largest deposits of vital minerals in the world could make Victoria a global powerhouse, a new report reveals, while agriculture could become the “second engine of economic growth”.
Victoria could become the Saudi Arabia of critical minerals if we can unearth an estimated $200bn treasure trove lying beneath the soil, a new report has revealed.
Regional hotspots across the state that are home to some of the largest deposits of vital minerals like zircon, rutile, titanium and rare earths in the world have the potential to transform Victoria into a global powerhouse.
This is the bold vision laid out in the Victorian Chamber of Commerce and Industry’s new report, “Seizing the Opportunity”, which also delves into how the regions – including Wodonga, Seymour, Bendigo and Geelong – can capitalise on defence manufacturing and key opportunities to boost agricultural exports amid the rise in the Asian “super economies”.
Executive Director Commercial Services Antoinette Truda, who will speak at the Herald Sun’s Bush Summit in Ballarat on Friday, said the state “cannot afford” to let the region’s potential sit idle while global competitors cash in.
“This is our moment to take the future leaps required to catapult the prosperity of our regions,” she said.
The chamber’s preliminary analysis shows that turbocharging high-growth industries could boost Victoria’s annual economic output by $90 to $120 billion by 2050.
With international demand for critical minerals for the global transition to renewables set to surge six-fold by 2040, Victoria could move beyond “dig and ship” to establish a sovereign manufacturing capability, the report argues.
The Murray Basin alone holds an estimated $200bn in mineral sands, with Victoria home to about 32 per cent of the world’s rutile – used in aerospace applications and electronics – and 27 per cent of global zircon reserves, used to build nuclear reactors and electronics.
Central Victoria also boasts Australia’s largest antimony deposits – vital for renewable energy storage – and Australia’s only operating antimony mine.
Leveraging the state’s abundance of mineral resources could place Victoria on the same path as Saudi Arabia, mirroring the Middle Eastern nation’s grand ambitions to become a critical mineral superpower.
“In addition to our world-class agriculture, our regions are also home to world-leading manufacturers, renewable energy hubs, globally significant reserves of critical minerals and thriving communities,” Ms Truda said.
“But we need bold investment, smart policy and co-ordinated leadership to unlock their full potential.
“If we get this right, we can build a stronger, fairer, more prosperous Victoria – and lead the nation from the regions out.”
The new paper also explores how the state’s agricultural sector could become the “second engine of economic growth” with Victorian farmers in the box seat.
“The rise of the Asian super economies with their billions-strong middle class presents an unprecedented opportunity for regional Victorian producers,” the report states.
Victoria is already exporting 73 per cent of Australia’s dairy, 46 per cent of horticulture, and 36 per cent of prepared food.
However, the chamber is warning the sector’s competitive edge faces risks from climate events, trade tensions, and geopolitical shifts.
The opportunity to make Victoria a global powerhouse is also being stifled by the state’s rigid tax regime and regulatory environment, Ms Truda has warned.
“To unlock the full potential of our regions, we need more than vision – we need the right conditions,” she said.
“That means cutting back the burden of taxes and regulation that holds business back, building the skills pipelines that will equip regional communities for the jobs of the future, and fast-tracking infrastructure approvals so projects can get moving sooner.
“Only then will investment, innovation and jobs flow where they’re needed most.”
The IMD World Competitiveness Yearbook 2024 ranked Australia 57th and 55th for company and personal income taxes respectively, with 83 per cent of Victorian businesses calling for a nationwide tax review.
The regions, however, have recently been buoyed by Australia’s AUKUS commitments, with a defence boom set to create thousands of high skilled jobs.
Data from May shows there were more than 7700 total job vacancies in regional Victoria, with estimates from the Regional Australia Institute suggesting filling the top four occupational vacancies Australia-wide could yield a $1.24bn economic uplift.
