Australia's New South Wales launching A$130M critical minerals fund

The Government of New South Wales in Australia plans to launch a A$130 million Critical Minerals Activation Fund in a bid to increase investment in critical minerals mining and advanced manufacturing, the governing Liberal Party said June 21.

The fund is part of a A$1.6 billion package within the state's 2022-2023 budget that aims to increase employment and investment. The package also includes A$1.3 billion for New South Wales' Regional Growth Fund, focusing on economic development.

The U.S. Defense Department recently expressed support for the development of critical minerals projects in Australia following President Joe Biden's invocation of the Defense Production Act on March 31, which aims to boost U.S. production of minerals critical to the energy transition and reduce the country's reliance on China.

In February, the Australian government conditionally approved loans of up to A$239 million to help the development of Renascor Resources Ltd.'s Siviour graphite project in South Australia and EcoGraf Ltd.'s Kwinana battery anode material plant in Western Australia. Both Siviour and Kwinana have major project status.

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