Report shows power digs
New research shows new investment in the resource sector is overwhelmingly focused on electrification minerals.
According to a new report, the mining industry sees a powerful transition coming, and is putting money toward materials used in the generation and storage of renewable energy.
In the last year, 42 companies targeting electrification minerals listed on the ASX compared to just one fossil fuel company.
The newly-listed resource companies are looking to produce mainly copper, nickel, lithium, cobalt, graphite and rare earths.
The new firms are strongly focused on Western Australia, with 24 looking to mine in the state and another seven headquartered there with operations elsewhere.
“Investors clearly see that the future of energy is generating and storing renewable electricity, not burning fossil fuels,” said Rod Campbell, research director at the Australia Institute.
“The new money, the entrepreneurialism, the innovation in the mining sector is all focused on electrification.
“This does not mean that there are not still large fossil fuel companies taking investment in Australia, clearly there are, but the data on new listings shows where investors see the industry heading in the future.
“The only fossil fuel company to list is a gas company focused on the Beetaloo Basin in the NT, an area where development is reliant on subsidies from the Federal and Territory Governments.
“A majority of electrification mineral companies are based in Western Australia reflecting not just the size of the state and its resources, but also the large role the mining industry plays there relative to other states.”