Lithium Valley Main Report 2018
increasing demand for rare earths around the world, this represents an important alternative source for local manufacturing opportunities. According to the report ‘Australia’s Identified Mineral Resources 2017’ in 2016, Australia’s Economic Demonstrated Resource (EDR) of rare earths was 3.43Mt. 45 This accounts for approximately 3% of the world total of 120Mt (USGS estimate), of which China holds the greatest proportion of any country (>36%). China also dominates world production (>83%). Australia is the second largest producer at 11%.
Another critical resource material for batteries is cobalt and WA is also one of the leading producers of cobalt outside of the Democratic Republic of Congo. 46 In 2018, the Democratic Republic of Congo has declared cobalt, tantalum and niobium as strategic mineral resources: “We need to make enough money before we run out of these minerals so that is why they are strategic to the country” Jean Nkunza, Advisor to Prime Minister Ponyo. 47 It would be prudent for WA to also declare cobalt a strategic mineral and ensure maximum value for finite resources.
4.8 Rare Earth Processing The ore containing rare earth elements is typically crushed and then concentrated at (or near) the mining site to remove the rock material. This leaves a Mixed Rare Earth Carbonate product (MREC) that is supplied to refining plants. Due to the nature of individual ore deposits, the proportions of each specific rare earth element in the concentrated MREC varies significantly from site to site. The refining stage adds considerable value by producing separate stable compounds for each REE. These compounds (usually as powder) are then supplied to downstream manufacturers, such as permanent magnet producers. 4.9 Solution to the strategic fuel supply issue Australia is not in compliance with International Energy Agency guidelines for minimal strategic fuel reserves. This is even more acute in Australia as there are no international fuel lines, fuel supplies geographically close and the Australian economy is highly reliant on fossil fuels. State and Federal Governments are consistently mute on this point even though industry bodies and specialists from defence continue to highlight this strategic weakness. WA is further isolated from the rest of Australia in relation to fuel security and therefore WA is the most vulnerable State in the most vulnerable country to fuel security issues. This issue does not need to continue into the New Energy economy. If Australia was to prioritise the transition to the electric economy, more transport would be electrified thereby reducing the demand for imported fuels. It also improves the local demand for batteries and local resources while creating new industries. The focus is to replace diesel with electric alternatives as soon as possible as one solution to the strategic fuels issue. Other strategic initiatives are also needed and comparative examples like Norway’s holistic approach could be considered.
45 Geoscience Australia, (2017), Australia’s Identified Mineral Reserves 2017, http://www.ga.gov.au/__data/assets/ pdf_file/0005/58874/Australias-Identified-Mineral-Resources-2017.pdf . (Accessed: 01 May 2018) 46 United Stated Geological Survey (2018), Mineral Commodity Summaries 2018, https://minerals.usgs.gov/minerals/ pubs/mcs/2018/mcs2018.pdf . (Accessed: 01 May 2018) 47 Reuters (2018), "Cobalt to be declared a strategic mineral in Congo", Reuters, 15 March 2018, https://www.reuters. com/article/us-congo-mining-cobalt/cobalt-to-be-declared-a-strategic-mineral-in-congo-idUSKCN1GQ2RX . (Accessed: 30 May 2018)
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