A range of ASX mining shares look set to get further support from the Australian government.
When Treasurer Jim Chalmers releases the Federal budget tomorrow night, ASX mining shares focused on critical minerals will be flagged to get a fresh boost.
That would come atop the $566 million the government already tipped into the strategic and critical minerals sector to encourage exploration and spur domestic production.
The government's Future Made in Australia program, intended to increase sustainable manufacturing, partly relies on reliable and affordable supplies of critical minerals.
And ASX mining shares are well-positioned, with the Department of Industry, Science and Resources noting that, "Australia is home to some of the largest recoverable critical minerals deposits on earth."
These include high-quality cobalt, lithium, manganese, rare earth elements, tungsten and vanadium.
Western nations, led by the United States and European Union, are pressing for secure supply chains of critical minerals outside of China. China has long dominated the mining and production of these technology critical metals, vital in EVs, solar panels, batteries, and a wide variety of military applications.
Chalmers flags support for ASX mining shares
According to Bloomberg, Chalmers indicated over the weekend that ASX mining shares in the critical mineral space will see more support from the federal government.
He labelled the sector a "golden opportunity".
Chalmers said, "The critical minerals space is one of the reasons why there is so much attention from global and domestic investors, but we need to make sure we can attract and deploy that."
He added:
We've got some huge advantages. We've been dealt some incredible cards: our resources base, our industrial base, energy, our human capital base, our attractiveness as an investment destination.
Chalmers said the policy would include "tax incentives, targeted grants, making sure that we've got the architecture to attract and absorb and deploy all of this private investment".
The Department of Industry, Science and Resources concurs.
It states, "We are growing our critical minerals sector to make Australia a world-leading producer of raw and processed critical minerals."
The government notes that Australia's critical and strategic minerals "are important for Australia's modern technologies, economies and national security".
Their critical values include:
- Supporting Australia's transition to net zero emissions
- Advanced manufacturing
- Defence technologies and capabilities
- Broader strategic applications
Which miners stand to benefit?
The list of ASX mining shares that could stand to benefit from further government support measures is lengthy.
I recommend investors interested in tapping into this "golden opportunity" dig in for some deep research time. Or reach out for some expert advice.
To get you started, in the lithium space, there are a number of S&P/ASX 200 Index (ASX: XJO) listed miners that remain well down from their highs amid languishing global lithium prices.
These include Pilbara Minerals Ltd (ASX: PLS), Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO) and Liontown Resources Ltd (ASX: LTR).
If you'd prefer to target ASX mining shares with a focus on critical mineral cobalt, you can have a look into beaten down Cobalt Blue Holdings Ltd (ASX: COB), or resurgent Ardea Resources Ltd (ASX: ARL).
