A State and Commonwealth funded feasibility study for a Perth-based common user Critical Minerals Advanced Processing (CMAP) facility is an encouraging step towards realising WA's downstream processing potential.
Chamber of Minerals and Energy WA (CME) Acting Chief Executive Adrienne LaBombard said a common user CMAP would provide an avenue for demonstration-scale value-adding projects.
"If proved feasible, a common use CMAP facility would allow businesses to pilot downstream processing without having to commit to expensive upfront investment in their own plant and equipment," Ms LaBombard said.
"It is the kind of economy of scale that is vital to moving WA down the production cost curve and improving our international competitiveness."
However, Ms LaBombard warned a common use CMAP facility alone was insufficient to attract the scale of investment required to seize the critical mineral processing opportunities on offer in WA.
"CME remains concerned high energy costs, protracted project assessment timeframes, uncertainty over environmental reforms and productivity-damaging workplace laws remain substantial barriers to investment in the resources sector," Ms LaBombard said.
"Worryingly, that includes investment in the upstream mining activities that for so long have underpinned Australian living standards and both the State and Federal budgets.
"Without sustained upstream production there can be no downstream processing - which is why CME is calling for a back-to-basics approach that prioritises getting the fundamentals right."
CME's recently released Federal Pre-Budget Submission contains more than 90 recommendations, including unwinding recent IR reforms, pausing the passage of new Nature Positive laws to allow further design and consultation and rapidly accelerating the build-out of low-emission, reliable and affordable electricity infrastructure.
Other recommendations include cutting the corporate tax rate to a more globally-competitive 25 per cent and prioritising the pre-election passage of proposed production tax incentives for critical mineral refining and hydrogen production.
