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'Critical minerals' sector in WA's Goldfields becomes political battleground in federal election campaign

WA Mines Minister Bill Johnston and Lynas Rare Earths managing director Amanda Lacaze inspect a section of the refinery. (ABC Goldfields: Jarrod Lucas)

Labor has branded Prime Minister Scott Morrison "ignorant" of the importance of critical minerals to the national economy, despite the Coalition making major election commitments to support the emerging sector. 

Shadow Resources Minister Madeleine King made the claim on the same day she toured a new $500 million rare earths refinery being built in Kalgoorlie-Boulder in Western Australia's Goldfields.

Mr Morrison has made two trips to WA in the past month, including a brief stopover in Kalgoorlie-Boulder where he visited Curtin University's WA School of Mines and the Super Pit gold mine.

In Perth on Tuesday, the Prime Minister pledged $50 million to create a new business and research partnership with Curtin University, focusing on the critical mineral supply chain that the government says will create 1,300 jobs over the next decade.

It followed last month's $119 million funding commitment towards a new $450 million nickel-cobalt refinery in WA's Goldfields.

"This election is about the future of our economy because a strong economy means a stronger future," Mr Morrison said in Perth on Tuesday.

Prime Minister Scott Morrison at the Super Pit gold mine in Kalgoorlie in March 2022. (ABC Goldfields: Jarrod Lucas)

The Prime Minister said $300 million had been committed to supporting key critical minerals projects through the government's $2.5 billion modern manufacturing initiative.

But Labor member for Brand, Madeleine King, said the Prime Minister remained "ignorant" of the sector.

"He might talk about rare earths every other day and critical minerals, which are vitally important, but he didn't bother to visit one of the major producers of rare earths in this country, which supplies us as well as the US," Ms King told the ABC.

Shadow Resources Minister Madeleine King (right) and Labor's candidate for O'Connor Shaneane Weldon. (ABC Goldfields: Jarrod Lucas)

She later added: "These people [referring to the Prime Minister and Nationals Senator Bridget McKenzie who also visited WA this week] don't respect Western Australians," she said.

"They fly in, fly out in their private jets, and have no regard for the true hard work and commitment required in this state to bring the resources economy to bear for the greater good of the whole Australian community."

Refinery progressing on schedule

On Wednesday, the first sod was turned at the Lynas Rare Earths plant in West Kalgoorlie, despite preliminary approvals ensuring work is already well advanced. 

The refinery will create 290 construction jobs and 128 operational roles once it begins production in the middle of next year.

WA's Mines Minister Bill Johnston said the geopolitical situation around the world ensured the project was globally significant.

"I think what this period of time has reminded everybody is you need to have strong logistics chains, strong value chains, and Western Australia is ideally placed to take advantage of the need to spread logistical and other risks," he said.

Kalgoorlie-Boulder Mayor John Bowler has previously suggested the new rare earths refinery could be as significant to the local economy as the discovery of gold in 1893, and Mr Johnston agreed with those sentiments.

"The Goldfields has a strong economy, and this adds another plank to that," Mr Johnston said.

WA Mines Minister Bill Johnston and Lynas Rare Earths managing director Amanda Lacaze at a ceremony on Wednesday. (ABC Goldfields: Jarrod Lucas)

No cost blowouts expected

Lynas Rare Earths managing director Amanda Lacaze said the company was the only producer of rare earths operating outside of China. 

Despite cost pressures being felt across the mining industry, she was confident there would be no cost blowouts with the Kalgoorlie refinery.

"The benefit of having done the diligent hard work at the beginning is that we have had few surprises along the way," she said.

Construction of the rare earths refinery is well advanced, despite formal approval from the WA government only being received in February. (ABC Goldfields: Jarrod Lucas)

She said Russia's invasion of Ukraine had not impacted the company's production as it was not focused on eastern Europe.

She welcomed the focus on critical minerals, like rare earths, during the federal election.

"Australia is blessed with this wonderful minerals endowment and it's incumbent on all of us to use that to best effect," Ms Lacaze said.

"All future-facing green technologies need rare earths.

"We have them here in Australia and it's up to us to find ways that we can develop these resources for the benefit of not only business but for the benefit of Australia and indeed Western Australia."

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