Labor Commits $475 Million to Western Australian Rare Earths Refinery

A photo of the main website for the Albanese Labor government's Future Made in Australia initiative, which is aimed at competing with developed countries trying to encourage local advanced manufacturing independent of Chinese supply chains. The key areas of focus are critical mineral refinement and green technology for renewables. This photo is taken in Perth, Australia on Nov. 25, 2024. Wade Zhong/The Epoch Times

The Albanese Labor government has announced an additional $475 million to develop the Eneabba Rare Earths Refinery project in Western Australia (WA).

The refinery is slated to be Australia’s first integrated rare earths facility, creating 900 construction jobs and 250 secure, well-paid positions once operational.

Australian company Iluka Resources will spearhead the project, supported by the government’s $4 billion Critical Minerals Facility (CMF) through Export Finance Australia.

Prime Minister Anthony Albanese said the investment would help the resources sector contribute to a strong economy, and good, well paying jobs.

“We will back WA’s resources sector through our plan for a Future Made in Australia and our Production Tax Credits,” he said.

The government says the refinery will be part of a global rare earth supply chain and unlock Australian deposits of critical minerals essential for technologies like electric vehicles, wind turbines, and mobile phones.

Democratic government have in recent years tried to disentangle itself from Chinese supply chains.

“Our government is committed to becoming a renewable energy superpower, not just to tackle climate change but also to harness the opportunity to create high-paying, secure jobs for Australians,” added Don Farrell, Minister for Trade and Tourism.

Government Carefully Managing Relationship With Mining Industry

Despite the government’s push for renewable energy and critical minerals, the mining industry has been at odds with the Labor government.

This announcement comes a week after Prime Minister Albanese, with an eye on upcoming elections in WA, dismissed a deal struck between Tanya Plibersek and the Greens to establish a federal environmental protection agency.

West Australian Premier Roger Cook has openly criticised the proposed deal, highlighting its potential economic impact on his state’s flourishing mining sector.

The Minerals Council of Australia (MCA) has also been critical of policies like Labor’s workplace laws, while advocating for the nuclear energy ban to be lifted.

“Unlocking value along the entire materials supply chain requires a productive workplace system,” an MCA report said.

Opposition Leader Peter Dutton has pledged sweeping reforms, including halving project approval timelines.

“I want to turbocharge our mining sector so that we can steer through the current economic headwinds and ride a new wave of prosperity,” Dutton said, promising to accelerate major projects and simplify workplace laws.