‘NT Govt must create a critical mineral plan’

The Northern Territory is well placed to take advantage of a quantum shift in the commodity market, the exponentially growing demand for critical minerals.

There is a growing demand for electric vehicles

THE Northern Territory is well placed to take advantage of a quantum shift in the commodity market, the exponentially growing demand for critical minerals.

The Association for Mining and Exploration Companies has launched a Critical Minerals Strategy for the Northern Territory.

Our strategy talks through what needs to be done so that the Territory can maximise the jobs and social and economic benefits from the minerals in the ground.

Driving this exponential rise are two key dynamics: the demand for batteries and the response to climate change.

There are now more devices on the planet powered by batteries than there are people, and the demand for batteries does not appear to be slowing down.

Batteries are needed for almost every device from your toothbrush to hi-tech bicycle brakes.

In the past 18 months almost all car producers have announced catalogues of electric vehicles. Tesla has rolled out batteries for homes.

There has been yet another version of the iPhone, boasting more technology and a longer battery life.

Each battery will require lithium, vanadium, cobalt, graphite, copper and nickel in far greater quantities than ever experienced.

For example, a battery powered vehicle demands double the volume of copper than that of a combustion engine, due to all the wiring needed.

These vehicles will also require many more magnets and other speciality products, which will drive up demand for rare earths with unusual names (try saying neodymium and dysprosium quickly).

It is difficult to understate how much the global response to climate change depends on these minerals.

The unique properties of these minerals make solar panels, wind turbines and hydro-electric motors work. Without these minerals, the world’s efforts to reduce carbon emissions will stall.

Some of these minerals have been named by the US Geological Survey as a “critical mineral”.

Critical, not just because they’ll underpin battery and magnet technology going forward, but because of their broader uses. It is crucial for the US, and all other developed nations, to have a ready supply of these minerals.

The Northern Territory’s geology has it positioned to take advantage of this rising demand.

There are three projects at the forefront, the Core Lithium project in Finniss, TNG’s MT Peake Vanadium project and Arafura developing high quality rare earths at Nolan’s Bore.

How much domestic processing of minerals occurs, is a choice for the Northern Territory Government.

How far downstream each miner progresses is an alchemy of factors, weighing the cost of regulation, third party payments and expected time frames.

Almost all these costs are within the control of the Northern Territory Government.

While the cost of doing business will underpin the decision-making, before that choice is made, the Government needs to clearly stake out a leadership role.

Western Australia published the Future Batteries Industry Strategy in late January, detailing what it hoped for the state and its own strategy to achieve it.

The Territory should do the same, outlining a clear path forward.

The Territory Government needs to signal intent, let Australia and the world know that it means business, and is open to the critical minerals business.

The Territory is good at attracting world-leading projects, just look at INPEX.

It must now leverage those skills to reposition for this future technology industry.

The question ultimately is how far downstream is the Territory willing to go?

Streamlining approvals, identifying land for a critical mineral’s hub (the logical choice is Middle Arm Point), and making sure it has the relevant infrastructure available, are all ways the Government can make it easier for companies to choose to invest their shareholders money.

The Government must move quickly and create a plan.

It must outline how the Territory can benefit from the critical minerals, as the opportunities ahead for the Territory really are boundless.

Warren Pearce is the chief executive officer of the Association of Mining and Exploration Companies.