Cobalt Demand, page-9

Interesting story in The Australian

sh to process critical minerals PAUL GARVEY RESOURCES REPORTER 27 MINUTES AGO MARCH 28, 2019COMMENTS The federal government has set its sights on building a downstream processing industry in Australia built around emerging “critical” minerals such as rare earths, cobalt and lithium. Resources Minister Matthew Canavan and Trade, Tourism and Investment Minister Simon Birmingham will today unveil a new report spelling out the government’s goal to help attract investment that will see Australia move further into the value-adding processing of raw minerals. The new report comes as both Senator Canavan and Senator Birmingham attend today’s official start of construction at Albemarle Corp’s $1 billion-plus lithium hydroxide processing plant at Kemerton, near Bunbury in southern Western Australia. READ NEXT ‘On the sauce no excuse’ RICHARD FERGUSON Downstream processing has been an aim of state and federal governments across Australia for decades, although the country has delivered a string of failures such as BHP’s HBI plant at Port Hedland, Rio Tinto’s HIsmelt process, and WA’s state-run Wundowie Iron and Steel Works. But the rise of electric vehicles and the surge in demand for minerals needed in sectors such as renewable energy, computing and telecommunications have prompted the federal government to join state governments working to attract downstream projects. Albemarle’s investment in Kemerton follows a $700 million-plus investment by Tianqi Lithium in a new lithium hydroxide processing facility at Kwinana. Tianqi and Albemarle are joint venture partners in the Greenbushes lithium mine in WA’s southwest. Perth-based Mineral Resources last year gave in-principle approval for two downstream lithium hydroxide modules for its Wodgina lithium mine in the Pilbara. And Pilbara Minerals is working with Korean giant Posco on a plan to build a downstream chemical plant in South Korea that would upgrade concentrate from Pilbara’s Pilgangoora mine. Downstream processing adds substantial value to the lithium concentrates coming out of WA’s lithium mines, and governments are particularly keen to capture a chunk of the taxes and jobs that come from carrying out more processing in Australia. Among the steps in the government’s report are plans for a more hands-on approach by the government to identify potential investors and offtake opportunities. Government agencies such as Austrade and the Northern Australia Infrastructure Facility are cited as needing to play a role. “While the market for some critical minerals is relatively mature, other minerals markets remain largely underdeveloped. Australia is moving up the lithium value chain as lithium producers invest in lithium processing,” the report says. “By comparison, investment in other minerals with high geological potential, such as cobalt and rare earth elements, has been slower. With the right supporting framework, the government expects cobalt and other critical mineral markets could develop in response to increasing global demand.” The report identifies 24 minerals with moderate or high geological potential in Australia and which have been designated as “critical” by at least two of the US, European Union and Japan.