The Victoria Labor government is reforming the mining sector in hopes of bolstering the state’s “ambitious renewable energy agenda.”
The move is a part of the government’s renewable energy and storage target of 50 percent by 2030 in a state that’s largely reliant on ‘brown coal’ for its energy. Ultimately, Labor is looking to meet a 95 percent renewable energy generation goal by 2035.
The Minerals Resources (Sustainable Development) Amendment Bill, which passed the Victorian legislature last week, will update the ‘work approvals scheme’ costing a budgeted $23.2 million.
The government says it will focus regulatory efforts on ‘higher risk sites and activities’ while reducing red tape for more standard changes.
“These changes will help deliver the materials we all need while maintaining protections for communities and the environment,” Minister for Energy and Resources Lily D’Ambrosio explained.
“We’re supporting our growing mineral resources sector to get the job done, as our state demands more rock, sand and critical minerals to build new homes, hospitals, schools, transport and renewable energy infrastructure.”
The reforms will be implemented in July 2027, giving time for consultation with industry, local government, environmental groups and communities, the government said in a press release.
Concerns Communities Will Be Left Out of Consultation
Victorian Greens deputy leader Ellen Sandell has previously spoken out against the amendment bill citing concerns about communities being left out of the regulatory process.However, Labor says Victoria can be a leader in the “renewable energy supply chain.”
“Our extractive materials will be in high demand to continue building the infrastructure we need all across the state,” says the government.
One potential player in the industry, Iluka Resources Ltd, has plans to develop the Wimmera Mineral Sands project in the Victoria Murray Basin. The deposit contains approximately 200 million tonnes of heavy mineral sands ore, according to the state government.
“The rare-earth-bearing minerals within the Wimmera deposit are very similar to the stockpiled minerals at Eneabba and could supplement feed to Iluka’s potential downstream refining activities at Eneabba in future years,” Iluka said on their website.
Gippsland Critical Minerals is also developing the Fingerboards Critical Minerals Project in the Glendale Deposit. The company says, “the project will be one of the world’s major producers of rare earths, zircon, ilmenite and rutile—minerals essential to renewable energy, technology, transport and communications.”
They also said the $200 million project will create up to 200 direct jobs.
Farmers Clash With Governments over Transmission Lines
However, opposition to renewable energy infrastructure has been mounting in Victoria after a group of farmers went to the Supreme Court of Victoria in May over concerns with the construction of transmission lines.The New South Wales government also faces a similar conflict regarding the Hume Link transmission line and a standoff with farmers.
Meanwhile, the Australian Energy Market Operator says that more than $12 billion of investment in new transmission lines should begin as soon as possible to secure supply over the next decade.
In Victoria, the government has budgeted $1 billion to reinstate the State Electricity Commission to invest in renewables. Critics have lambasted the move saying it will harm the private sector.
The Victorian Liberal Party have even been blaming Labor for rising energy prices.
“These price increases come at the worst possible time for Victorians struggling to make ends meet and are the consequence of the Andrews Government’s failure to deliver a real plan for more energy supply and a more secure network,” says Shadow Minister for Energy and Resources, David Hodgett.
The Liberals have also alleged Labor has been appeasing The Greens, who have a more ambitious renewable energy goal of 65 percent renewables by 2030.
As for the federal government’s plan, Labor is aiming at 82 percent renewables by 2030.
They’ve pledged a 43 percent reduction of greenhouse gas emissions by 2030 from 2005 levels, a part of the ultimate goal of net zero emissions by 2050.
“Renewable electricity generation quadrupled between 2000 and 2021, from 17.6 terawatt hours (TWh) to 70.3 TWh, pushing up the national share of renewables from eight percent to 27 percent in electricity generation,” according to an Executive Summary by the International Energy Agency (IEA).
By 2027 the IEA says Australia’s renewable energy capacity will expand by 85 percent due to the agreed-upon targets.
Soaring natural gas, costs have also underpinned the argument for going in the solar and wind direction. However, critics of renewables have long argued baseload power can’t be achieved with wind and solar and need fossil fuels or even nuclear power for backup.
Dr Glenn Platt, Research Director of Energy at CSIRO, has said that a power system could theoretically operate on 100 percent variable renewable energy. But he also says there are questions about how that translates into a large grid with major industrial loads.
