An article from The Economist (March 2023) describes how the Australian government, aware of the importance of minerals such as lithium, nickel, and cobalt for the global energy transition, has launched investment plans to increase extraction capacity and strengthen the supply chain. Although Australia is not part of South America, its relevance as one of the leading exporters of strategic minerals directly impacts the geopolitical dynamics of raw materials.
For international investors, Australia’s political stability and advanced infrastructure represent significant competitive advantages. However, the Australian mining industry faces growing environmental pressures and high production costs, which require a thorough assessment of long-term profitability. Still, exploration projects and offtake agreements—long-term purchase contracts—with local companies can ensure a steady supply of essential minerals, offering a balance between security and growth potential.
Australia’s mining policy may also influence global competition for talent and technology. Investment in research and development of more sustainable and efficient extraction methods strengthens the country’s position as a strategic partner for companies looking to secure their supply chain amid international volatility.
Source:
• The Economist, “Australia’s Critical Minerals Push to Meet Global Demand,” March 2023
