The world needs critical minerals to make the switch to renewable energy, but miners say long approval processes and a tough environment for finance is putting projects at risk.
The federal government has identified 31 minerals that are critical for its planned transition to renewable energy, including copper, lithium, nickel, cobalt and rare earth elements.
The minerals are used in a range of renewable infrastructure, including wind turbines, electricity networks, phones, batteries and electric vehicles, but environment groups warn that many native species are threatened by mining.
They say new mining projects need more scrutiny, not less.
Australia could be 'overshadowed'
Australian Strategic Resources (ASM) managing director and CEO Rowena Smith knows firsthand how long it can take to get a mining project up in Australia.
Rowena Smith from Australian Strategic Materials says the Dubbo Project will create many local jobs. (ABC News: John Gunn)
ASM has been working for 20 years on the Dubbo Project, centred around a rare earths deposit in western New South Wales, which was approved by the NSW government in 2023.
The company estimates the construction phase will cost $2.5 billion and employ 1,000 workers, with 270 full-time jobs expected when the mine is up and running.
"This will give that community … generations of job opportunities for engineering, artisans and entry-level technician roles," Ms Smith said.
It will take ASM another four years to secure the finance to begin operations.
Ms Smith said long lead times like those ASM had experienced meant Australia was uncompetitive against other countries.
"Without faster pathways, Australia's standing in the critical minerals sector could be quickly overshadowed by competing regions," she said.
Bowdens Silver mine near Mudgee has stalled over issues with a proposed transmission line. (ABC Central West: Mollie Gorman)
'Alarming' lead times
The Minerals Council of Australia (MCA) released a report earlier this year that found 80 per cent of planned mining projects would probably be discarded due to a range of factors, including higher labour, energy and transport costs, higher royalties and red tape.
In a statement, the MCA said long lead times for projects were "alarming" and "there is a genuine concern within the minerals sector that this … will only increase because of the introduction of restrictive workplace policies, more red tape, and a more extensive and risky environmental approvals process".
Newmont Australia head of sustainability Melissa Winks told business leaders at the International Mining and Resources Conference in Sydney last month that the lengthy approvals process not only discouraged investment but also complicated community relationships by creating "engagement fatigue".
"We must find a balance between environmental protection and economic opportunities that will allow our communities to thrive," she said.
Federal Environment Minister Tanya Plibersek's decision to grant an Aboriginal protection order at McPhillamy's Gold Project near Blayney in NSW was raised in a number of panel discussions at the conference.
Miners and money managers like Neumont, ASM and MinterEllison remarked that the decision had a chilling effect on investment.
Regis Resources, the company behind McPhillamys, announced yesterday it would challenge the environment minister's decision in the Federal Court.
An overview of the proposed McPhillamys Gold Project, near Blayney in Central West NSW. (ABC: Landline)
Call for 'fast no' decisions
The Australian Conservation Foundation (ACF) is sympathetic to the mining industry's dilemma because it can see the need to develop sources of critical minerals to build renewables, but it also wants tougher measures to protect biodiversity.
The environment group is calling for a "fast no" decision-making process for proposals that would have unacceptable impacts on threatened species and First Nations culture and heritage.
ACF national biodiversity policy adviser Brendan Sydes said the Environment Protection and Biodiversity Conservation Act (1999) needed fixing.
"Australia's nature laws are broken — they are not protecting nature and they don't work for businesses," Mr Sydes said.
Brendan Sydes says a "fast no" process would give miners more certainty. (Supplied: ACF)
He wants to see the creation of a new, independent national Environmental Protection Agency (EPA) to stop projects that threaten native species.
"Things keep getting approved that have harmful impacts on nature and species keep getting added to the threatened species list at an ever-growing rate," Mr Sydes said.
A spokesperson for the MCA confirmed its opposition to some of the ACF's proposed changes to the Environmental Protection and Biodiversity Act, including the establishment of a "fully independent" EPA, saying it was a risk for industry.
"An increasingly detached EPA with little accountability or requirement to operate in line with government objectives will create a high-uncertainty, low-confidence regulatory environment," the spokesperson said.
Investment going overseas
Sydney-based engineering firm Worley employs 50,000 people in 50 countries and provides management and consulting services.
The company's global sector lead for mining, minerals and metals, Nick Bell, said the average time it took to develop a copper mine globally was 16.9 years "from drill core in the ground to copper production".
"Mining requires big and patient capital and finding the money on or off a balance sheet is a challenge," he said.
Nick Bell from Worley says the average time to get a copper mine up globally is almost 17 years. (Supplied: International Mining and Resources Conference)
The MCA said the average development time for mines in Australia was also 16 years, but projects were developed more quickly in South East Asia and the US, so investors were taking their capital to those countries instead.
In a statement, it said the situation was costing Australia $68 billion a year in lost investment.
Simon Scott, from law firm and fund manager Minter Ellison, said investors were worried about long approval timelines and what he called "surprises" that came even after a mine was approved,
He said the most common thing he heard from investors now was "how long before we get a return on the money?"
NSW projects moving ahead
Data from the Australian Bureau of Statistics shows mineral exploration in Australia has dropped 5.5 per cent in the last year to below a billion dollars, but that figure is still almost three times higher than the level of investment in 2016.
While there is concern about mine approval timelines, the approval rate — at least in NSW — has been high.
The state has processed 48 mine development applications in the last decade and approved 40 of them.
Another three critical minerals projects in NSW have been approved and another three are being assessed.
And the council said six more projects were preparing environmental impact statements.
The NSW government released its own critical minerals strategy in October, including a proposal to defer royalties payments to ease the financial pressure on miners in the early stages of a project.
WA leads the way
Western Australia has adopted a Fast-Tracking Mining Approvals Strategy that includes a parallel approval process.
Rebecca Tomkinson from the Chamber of Minerals and Energy of Western Australia said companies could apply for several approvals at once.
Chamber of Minerals and Energy chief executive Rebecca Tomkinson. (ABC News: James Carmody)
"You can start your water permitting, your land clearing licence, your mine lease alongside your EPA approval and nothing happens until you're permitted, but you can start them all at the same time," she said.
That change could shave several years off the time it takes to get a mine into production.