WA Strengthens Critical Minerals Processing with $3 Million Investment

Minerals

A feasibility study for a common-user critical minerals advanced processing facility in Perth, Western Australia, is set to receive a $3 million joint investment from the WA and Federal Governments. This initiative aims to enhance Australia’s onshore critical minerals processing capabilities, supporting small and medium-sized enterprises (SMEs) in the sector.

Government Initiative to Boost Local Processing

The funding will be allocated through the $10.2 million Critical Minerals National Productivity Initiative, introduced in May 2024. This initiative, led by the Department of Industry, Science and Resources, collaborates with states and territories to identify potential common-user facilities for critical minerals processing.
The Minerals and Resources Institute of Western Australia will oversee the feasibility study. The proposed facility will feature pilot plant equipment to support SMEs in downstream processing of lithium, nickel, high-purity alumina, copper, and aluminium at a demonstration scale.

Enhancing Australia’s Sovereign Capability

Federal Resources Minister Madeleine King highlighted that this investment aligns with the ‘Future Made in Australia’ policy, aiming to generate well-paying local jobs and secure more of the value chain.
“Common-user facilities are crucial for scaling up our capacity to process mineralresources onshore, fostering business collaboration and enhancing economic resilience,” King stated.
WA Mines and Petroleum Minister David Michael emphasized the long-term benefits, stating that the study will advance Australia’s processing capabilities amid the global energy transition.
“To achieve these ambitions, this facility will demonstrate critical minerals processing at a more advanced, value-added stage, leading to greater onshore processing and manufacturing opportunities over the next 10 to 20 years,” Michael said.

Industry Leaders Support Feasibility Study

The Chamber of Minerals and Energy WA (CME) welcomed the initiative, with acting CEO Adrienne LaBombard describing it as a positive step toward realizing WA’s downstream processing potential.
“If proven feasible, the facility would enable businesses to pilot downstream processing without requiring expensive upfront investments,” LaBombard explained. “This economy of scale is essential for lowering production costs and improving WA’s international competitiveness.”
However, LaBombard cautioned that sustained upstream production is crucial for the success of downstream processing, urging a back-to-basics approach to strengthen industry fundamentals.