Local contractors and suppliers will benefit from a national commitment to extract commodities domestically.
The Federal Government recently confirmed it will attract more mineral processing activities back to Australia.
The October 2022 federal budget allocated up to $1 billion of taxpayer money towards expanding mining science technology capabilities and ensuring high purity alumina, and other raw materials, are processed in Australia.
“The commitment to the $15 billion National Reconstruction Fund to transform and strengthen industries is most welcome. Up to $1 billion of that being allocated to a Value-Adding In Resources Fund very much aligns with the progress the … mining and resources sector is already making in expanding its mid and downstream processing capabilities,” Chamber of Minerals and Energy of WA CEO Rebecca Tomkinson said in a public statement.
The government predicts national resources and energy exports will reach a record $425 billion before the end of 2022. However, even more jobs and economic opportunities could be created through giving proponents new incentives to extract and process resources domestically.
“This has the potential to unlock more investment boosted through partnerships with institutional investors and is consistent with the transition to net zero by 2050,” the Australian Labor Party website said.
“The $15 billion National Reconstruction Fund is the first step in Labor’s plan to rebuild Australia’s industrial base.”
The National Reconstruction Fund aims to:
- create “secure, well-paid” jobs
- build on national strengths as a “resource rich” nation
- diversify the national industrial base so businesses can grow and sustain jobs
- develop national sovereign capability
- drive regional economic diversification and development across regions.
- An independent board will administer the fund while the government will set mandates to drive investment.
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