Access is vital for critical minerals needed to decarbonise our economy

Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies

There is an endless stream of debate and discussion about the topic of land access across the country.

With an abundance of land, competing interests and critical resources the envy of the world, it’s little wonder that Australia is often referred to as the lucky country. However, as we look to grow our position as one of the world’s most important critical mineral suppliers, new challenges are emerging that threaten this opportunity.

Perhaps ironically, this new challenge is coming from renewable energy technologies, built from the critical minerals we need to mine. More on that further in this article.

Exploration spend at an all-time high

To provide some context, Australian mineral exploration expenditure has scarcely been higher, with the 2023 June quarter (ABS data) recording a staggering $1.069 billion, second only to $1.099 billion in September 2022 - high points in what has been two pretty good years for exploration in Australia.

In Queensland, exploration spend is similarly high, with $147.8 million in the 2023 June quarter, with a 60/40 split between minerals and coal.

This record-breaking effort has delivered considerable discovery and exploration success across the country. As a result, many AMEC member companies are advancing projects and heading into their ‘development window’.

Nationally, copper was the prime mover, recording a record-high $176 million in expenditure, with $44.8 million of this recorded in Queensland. This is off the back of record expenditure in both NSW and South Australia, up 15% and 33% respectively.

While these results are promising, the announcement in October by Glencore to close their Mount Isa Mines underground copper operations and copper concentrator by 2025 served as a reminder to Government and industry not to take things for granted.

Put simply – building permanent surface infrastructure on land to generate renewable electricity, be it wind, solar or hydro, can sterilise that land for future economic development.

We can’t just expect things to continue trending in the right direction without the appropriate support from authorities. The Glencore announcement serves as a wake-up call to ensure the Queensland State Government does everything in its power to support current projects, help with expansion opportunities and develop new projects.

With the right support, there is a wide range of explorers, project developers and producers in this area that can help fill the mineral and employment gaps left by the Glencore announcement. So, now is the time to turn the talk about being a smarter and faster place to do business, into reality.

In a positive sign, the significant policy and funding commitments already in place to develop the North West Region shows that the Government is motivated to develop minerals vital for our energy transition.

And herein lies the irony I referred to earlier. What underscores these remarkable results is the global appetite to find and mine critical minerals.

The substantial lift in exploration expenditure for critical minerals, particularly lithium, nickel and copper, reflects the changing ambitions of many mineral exploration companies, and the anticipated demand growth for these minerals.

Exploring greenfield sites for critical minerals – threats and opportunities

This demand is taking explorers further into unexplored parts of the country. Greenfields exploration rose again by 15% to $318.3 million, and greenfield metres drilled increased 30%.

So, as the world craves more critical minerals to fuel the energy transition, there is a growing threat that explorers and developers may be locked from the land needed to supply them.

This is completely incongruous because Australia has long benefitted from the multi-land use approach between land users that has enabled the agricultural, pastoral and resource industries to co-exist and, for the most part, to work together effectively.

However, with the rush to introduce renewables and hydrogen projects to help decarbonise our economy and battle climate change, governments appear to be putting aside the multi-land use approach that has served us so well.

Around the country, these land use conflicts are becoming hot issues, and we are seeing major conflicts and real confusion and uncertainty for rights over land.

Land use in Queensland

Here in Queensland, where co-existence has been a live issue for more than a decade between the LNG and agricultural industries, lessons of the past appear not to have been learned.

The proposed ‘Renewable Energy Developments’ and the draft Queensland Renewable Energy Zone (QREZ) Roadmap scarcely reference known geology and existing land tenure. This runs the real risk that tracts of land, and the critical minerals beneath, are being sterilised for uses outside of developing renewable energy projects and agriculture.

Restricted Areas are being used by Government to freeze all land rights, in favour of future renewable proponents. It is a tricky situation as exploration companies can’t raise capital ethically or invest the capital they do have due to the lack of certainty; meanwhile the State is happy to collect rents.

The current state of play around Australia

In NSW, Restricted Areas are being laid down to protect future renewable projects without any engagement with the companies holding exploration tenure. Companies wake up to find decisions have already been made without any consultation, putting their rights to explore or develop in serious jeopardy.

In Victoria, farmers are discovering the massive impact that huge transmission lines will have on their properties, and in Western Australia the prime areas for renewables, such as solar and wind, seem to be in the same place as prime mining and exploration areas.

All of which mean there is going to be a greater contest for land and greater conflict between industries across the country.

Despite this, our members support the development of major renewable projects. These developments will ultimately assist our industry to decarbonise, but we need to manage this development carefully. If we don’t, we might lose access to the huge amounts of mineral resources needed to generate and store renewable energy in the rush for renewable projects.

Put simply – building permanent surface infrastructure on land to generate renewable electricity, be it wind, solar or hydro, can sterilise that land for future economic development. It is not impossible, but once something is built, let's face it, the business case substantially changes.

So, we need processes in place now that will safeguard critical mineral resources from renewable energy infrastructure, to ensure we don’t lock ourselves out of future mining opportunities. Instead of a haphazard shot in the arm that only considers what is required today.

Balanced solutions to futureproof land use

Here are some reasonable and balanced solutions our Association is taking forward to ensure coexistence on the land:

• an integrated whole of government policy to coordinate the interests between resources, agriculture and renewable energy projects

• a level playing field for engagement and notifications, so that all proponents are required to meet the same requirements for exploration and development

• treat and protect mineral resources like other natural resources, with similar approval processes we use to protect flora and fauna

• create a modern tenure solution that provides flexibility and that favours multiple land use

The mining and exploration industry is no stranger to coexisting alongside other major land users, agricultural and pastoral industries.

And while occasional conflict arises, for the most part, an uneasy truce has held firm, with each industry recognising that the other had legitimate rights over the land and that by working together, both industries could not just survive but flourish.

The principle and policy of multiple land use have enabled Australia to benefit from these thriving primary industries. As our industries and land uses continue to evolve, decision-makers have a responsibility to futureproof our land to ensure we can adapt to the challenges of today and tomorrow. 