Labor supersizes renewables subsidy scheme
Climate Change and Energy Minister Chris Bowen will on Tuesday announce a 25 per cent increase to the size of the Capacity Investment Scheme, Labor's program to boost private investment in renewables by providing minimum revenue guarantees for new clean energy projects.
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The Australian
3 hours ago
- The Australian
Port Pirie, Hobart Nyrstar smelters bailout a boost for critical mineral capacity
Australia will develop new sovereign capacity in critical mineral production, under a $135m bailout of two key Nyrstar smelters in two states. The rescue package for Nyrstar's Hobart zinc and Port Pirie lead smelters, revealed exclusively in The Australian last month, secures 1400 jobs and could create hundreds more. A rare bipartisan, multi-jurisdiction plan, confirmed on Tuesday, will see critical minerals antimony and bismuth produced at Port Pirie, South Australia, and germanium and indium in Hobart. These minerals are critical in the production of key products for defence, clean energy, transport, advanced manufacturing and technology. 'Through this transformation, Nyrstar aims to explore possible production of antimony, bismuth, tellurium, germanium and indium – minerals vital to clean energy, defence and hi-tech sectors,' federal Industry Minister Tim Ayres said. 'An antimony pilot plant will be deployed in Port Pirie as a priority … This would position Port Pirie as Australia's only producer of antimony metal and one of the few globally, supporting sovereign capability in defence and advanced manufacturing.' Federal taxpayers will contribute $57.5m to the package, the Labor South Australian government $55m and the Tasmanian Liberal caretaker government – with state Labor support – $22.5m. As well as the critical mineral projects, the funding – a mix of new and pre-committed money – will help finance a major maintenance project at Port Pirie and major furnace and wharf upgrades in Hobart. SA Premier Peter Malinauskas hailed the outcome, which follows Nyrstar's claims of market sabotage by Chinese-subsidised industry, as 'an opportunity to transform the Port Pirie smelter and secure its future for the long term'. 'We can modernise the Port Pirie smelter and take advantage of the world's desire for critical minerals,' Mr Malinauskas said. 'The Port Pirie operations have faced challenges from global forces largely beyond its control. But the transformation of the smelter into a producer of critical minerals like antimony would put our state at the forefront of a global supply chain that is vital to clean energy, defence and hi-tech manufacturing.' Nyrstar Australia chief executive Matt Howell said the company's operations in this country had a century of history and could now become 'a new hub for the supply of critical metals – not only to Australia but globally'. 'Port Pirie and Hobart represent a key part of Australia's metals processing infrastructure,' Mr Howell said. 'We have an opportunity to build upon this to create a new source of economic growth, producing metals for defence industries, renewable energy and high-technology manufacturing. 'Through this partnership, Australia is demonstrating that it is at the forefront of taking meaningful steps to retain nationally strategic smelters and partner with industry to provide urgent short-term support, as well as work on solutions for their long-term viability.' As Australia's only lead refiner and the largest zinc refiner, Nyrstar contributed about $1.7bn to the economy each year, he said. The first stage of the package would require an additional 350 contractors and 90 suppliers at Port Pirie, and about 200 in Hobart. While welcoming the support, the Australian Workers' Union called for a broader national smelter strategy to provide longer-term sustainability across the metals industry. Coalition industry spokesman Alex Hawke said the bailout 'ignored deeper challenges with Australian industry'. 'High energy costs and stifling regulation must be addressed to improve productivity and boost competitiveness,' he said. Politics The Productivity Commission has proposed giving tech giants free access to Australian content for AI training, sparking fears creators will miss out on compensation. Economics New regulation risks $116bn in economic gains at risk, Productivity Commission warns Jim Chalmers.
AU Financial Review
8 hours ago
- AU Financial Review
Labor's bailouts for globally competitive smelters a contradiction
The economic reforms of the 1980s and 1990s liberalised and opened up Australia's highly protected economy, which had long sheltered behind high tariff walls. The result was three decades of prosperity broken only by the COVID-19 pandemic. Over the past three years, living standards have fallen amid the nation's steep productivity decline. Jim Chalmers' economic reform roundtable needs to focus on a meaningful tax, workplace, and regulatory agenda to fix Australia's economic malaise by boosting investment in productive and globally competitive businesses. However, what is now gathering pace is Labor's revival of industry policy. Counter-productively, this marks a return to old 'Fortress Australia' days of government intervention cossetting select industries at the expense of the nation's overall international competitiveness.
AU Financial Review
8 hours ago
- AU Financial Review
NSW wind projects in freefall as Newcastle proposal to be abandoned
The Norwegian oil and gas giant behind the last proposed offshore wind project remaining in NSW is expected to formally back away from the development by the end of the month, casting doubt over Labor's plans for the technology in the state. Equinor, the state-owned conglomerate behind the proposed Novocastrian wind farm near Newcastle, privately announced it would withdraw from the project in May, days before the government extended the deadline for its offer of a key development license.
