The Chamber of Minerals and Energy WA (CME) welcomes today's Federal Government commitment to dedicating $750 million from the Future Made in Australia Innovation Fund to green metals projects.
CME Chief Executive Officer Rebecca Tomkinson said local production of low-emission metals offered immense potential for Western Australia to capitalise on its position as a leading global supplier of both iron ore and alumina.
"Decades of sustained investment in our upstream mining capability means WA has built a strong competitive advantage and is well positioned to be a first mover in the green metals space," Ms Tomkinson said.
"However, transformational breakthroughs in green metals production requires the commercialisation of new technologies and processes.
"That kind of research is neither cheap nor easy, which is why CME has been advocating for expanded R&D support, tax incentives and grants to fast-track homegrown technologies.
"Many of our major iron ore producers are already investigating cutting-edge methods to slash emissions from the refining of Western Australian ores and should be prioritised for support through this new fund."
Steelmaking accounts for between 6 to 9 per cent of global emissions, with ironmaking alone generating up to 90 per cent of that CO2.
In December, CME released a report that found large-scale production of green iron in WA could reduce global emissions by 1.2 per cent by 2050 - effectively offsetting nearly every tonne of CO2 currently produced in Australia.
The prospective new industry would also generate $74 billion in economic value and support 19,600 direct jobs.
While welcoming the fund, Ms Tomkinson stressed developing new pathways to produce green metals was just one piece of the puzzle.
"Just as important as discovering this technology is ensuring industry has access to the affordable, reliable and low-emission energy that will inevitably be required to run it," Ms Tomkinson said.
"Without cost-competitive electricity, Australia has no hope of attracting the investment required to move into green metals manufacturing.
"Similarly, without a continued focus on the fundamentals underpinning our existing resources sector we will struggle simply to maintain our current industrial base.
"Bringing down energy costs, slashing project assessment timeframes, providing clarity over environmental reforms and unwinding harmful recent industrial relations changes must all be first order priorities for the next Federal Government."
