Source:
GREATER SA News, 05/08/2025
The Australian government has announced an investment of A$135 million (approximately US$90 million) to upgrade and modernize two key smelters—in Hobart, Tasmania, and Port Pirie, South Australia—that process critical minerals. The upgrades are designed to expand domestic capacity for refining and producing strategic metals such as antimony, bismuth, germanium, indium, and potentially tellurium. These metals are vital components in defense systems, renewable energy technologies, and advanced electronics, but their supply chains are highly vulnerable to geopolitical disruptions. By strengthening domestic refining capacity, Australia aims to reduce reliance on foreign sources and reinforce its position as a reliable supplier to allied nations.
The investment is part of Australia’s Critical Minerals Strategy, which seeks to leverage the country’s vast mineral resources while adding more value domestically through processing and downstream manufacturing. Modernizing the Hobart and Port Pirie facilities will enable them to produce higher-purity materials, improve energy efficiency, and meet stricter environmental standards. It also positions Australia to play a more strategic role in global supply chains at a time when demand for critical minerals is expected to soar, particularly in sectors such as electric vehicles, solar energy, and advanced defense technologies.
From a governance and sustainability perspective, the success of these smelter upgrades will depend on stakeholder engagement and maintaining a robust social license to operate. The projects will need to address community concerns related to emissions, energy use, and waste management, while also ensuring local economic benefits through jobs, training, and regional development. By embedding transparency, environmental accountability, and community partnership into the modernization process, Australia can not only secure critical mineral supply chains but also reinforce public trust in large-scale industrial investments.