The Australian resources sector is showing mixed reactions to the federal government’s proposal to launch a Critical Minerals Strategic Reserve if re-elected. Prime Minister Anthony Albanese stated the reserve aims to protect Australia’s national interest, with a taskforce to finalize the scope by the second half of 2026. The Minerals Council of Australia (MCA) expressed uncertainty, with chief executive Tania Constable noting both potential benefits in mitigating US tariffs and domestic risks that could impact commercial viability through downward pressure on commodity prices.
Constable emphasized that the initiative requires careful evaluation against other opportunities, such as supporting projects that deliver regional development and jobs, including the Junior Minerals Exploration Incentive. She stated focus should be on lowering energy prices, easing industrial relations laws, and accelerating environmental approvals. Conversely, the Chamber of Minerals and Energy in Western Australia views the proposal as recognition of WA’s critical minerals importance. Chief Executive Rebecca Tomkinson said recent trade and geopolitical disruptions are a golden opportunity for investment in Australia’s reserves. She said labor’s plan to offer offtake agreements might assist in bringing projects to market by enhancing their attractiveness to investors. Albanese stated the strategic reserve would enable the government to manage trade and market disruptions from a position of strength, advancing Australia’s national interest.
