2.4 Top priorities 1. Quality priority in all steps in the value chain – the fundamental driver in bringing value added New Energy-based industries to the state will be the commitment to high quality products. This will require technical and research capability, financial awareness of the opportunities to invest in quality, and governance processes that ensure this outcome. 2. Designation of strategic resources – strategic resources are fundamental to the long-term sustainability of WA. Strategic resources must be clearly identified and have additional focus and protection by government. 3. Establishment of a Specialised Industrial Park (SIP) in Kwinana – the establishment of a SIP in Kwinana will stimulate broad industry economic activity and generate jobs through the development of New Energy metals manufacturing and processing capabilities, development of secondary supporting industries, trading of goods at lower prices, and improving international competitiveness. It can also be the structure for a series of other governance arrangements including Strategic Environmental Assessment, that can enable the rapid development of New Energy industries on the site and become the base for Lithium Valley. 4. Branding – WA has the raw resources of minerals and skilled people to make Lithium Valley a reality. It will require significant support from industry, the community and government but can become a great source of pride and value for the state. It is recommended that the state adopt a branding exercise to position Lithium Valley. 5. Smart royalties – It is estimated that Australia loses up to $90B per year in resource royalties. 2 The royalties system must be reformed to capture this value for strategic resources at both the State and Federal levels. Dynamic, rather than flat rate royalties, may also help to incentivise secondary processing and disincentivise (but still permit) the direct export of raw materials. International examples abound of how this can be done. 6. Domestic reservation – to ensure a long-term supply of raw materials, a minimum analytically-determined percentage of strategic resources designated for potential local value adding should be reserved. This guarantees local supply security for processing. The minerals should be valued at market price to ensure mining companies are not disadvantaged. 7. State strategic vision and strategy - a roadmap with milestones and timelines for up to 20 years to underpin commercial investment decisions. Infrastructure WA could integrate this into its 20-year infrastructure strategy, to help prioritise public and private sector investment linking industrial, logistics and service infrastructure for maximum effect. 8. Parliamentary Inquiry into New Energy Metals Industry – all aspects of the development of the Lithium Valley concept as well as how the local energy system can transition into being a model for electricity and transport using the New Energy metals for the transition in electricity generation, transmission and retail as well as the integration of electric vehicles. This can build on the existing Economics and Industry Standing Committee Inquiry into Microgrids and Associated Technologies that is showing the importance of distributed generation. 3 9. Regional Lithium Valley – it is recommended that a globally significant e-waste recycling facility be developed at Geraldton with its port linked to the European, Asian and Indian Ocean markets and its Oakajee Industrial Estate linked by rail to the South West and eastern states. Industrial processing is likely to be viable in Kemerton, the Pilbara, Kimberley and Goldfields if quality New Energy mineral products are created with some potential for the Kimberley across rare earths. All such places need to see their energy as facilitating the solar and battery transition in their own services. The top priorities identified in this report are:
2 Bagshaw, Eryk (2018), “‘Staggering’: $90 billion lost in resources tax”, The Sydney Morning Herald, March 12, 2018, https://www.smh.com.au/politics/federal/staggering-90-billion-lost-in-resources-tax-20180305-p4z2uv.html. (Accessed: 01 May 2018)
3 Economics and Industry Standing Committee (2018), Inquiry into Microgrids and Associated Technologies in WA, 21 February 2018, Legislative Assembly of WA, http://www.parliament.wa.gov.au/Parliament/commit.nsf/ (EvidenceOnly)/8C9FB0B8AA10E88D4825823B0019BAA3?opendocument (Accessed: 01 May 2018)
Page 17
Made with FlippingBook Ebook Creator