Victoria Labor Government Implements Mining Sector Reforms to Fuel Renewable Energy Agenda
The Victoria Labor government is rolling out significant reforms in the mining sector, aiming to support the state’s ambitious renewable energy agenda. As part of its renewable energy and storage target to reach 50 percent by 2030, Victoria is making crucial changes to the Minerals Resources (Sustainable Development) Amendment Bill, which recently passed the Victorian legislature. The government’s ultimate goal is to achieve 95 percent renewable energy generation by 2035.
Traditionally reliant on ‘brown coal’ for energy production, Victoria realizes the urgent need to transition to cleaner and more sustainable energy sources. The updated ‘work approvals scheme,’ backed by a budgeted $23.2 million, will prioritize regulatory efforts on higher-risk sites and activities while reducing unnecessary bureaucratic hurdles for standard changes.
According to Lily D’Ambrosio, the Minister for Energy and Resources, these reforms strike a balance between delivering the essential materials required for infrastructure development and protecting communities and the environment. The state recognizes the increasing demand for rock, sand, critical minerals, and renewable energy infrastructure as it continues to build new homes, hospitals, schools, and transportation networks.
To ensure consultation with relevant stakeholders, including industry players, local governments, environmental groups, and communities, the reforms are set to be implemented in July 2027, allowing ample time for constructive discussions and feedback.
While these reforms strive to solidify Victoria’s leadership in the renewable energy supply chain, concerns have been raised by critics. Ellen Sandell, the Victorian Greens deputy leader, expressed reservations about the amendment bill’s potential exclusion of communities from the regulatory process. However, the government remains steadfast in its commitment to foster a thriving mineral resources sector that supports renewable energy development.
Several key players in the mining industry are eyeing opportunities in Victoria. Iluka Resources Ltd, for instance, plans to develop the Wimmera Mineral Sands project, which boasts approximately 200 million tonnes of heavy mineral sands ore. These rare-earth-bearing minerals could supplement feed to Iluka’s downstream refining activities, supporting the state’s renewable energy, technology, transport, and communications sectors.
Additionally, Gippsland Critical Minerals is progressing with the Fingerboards Critical Minerals Project in the Glendale Deposit. With estimated reserves of rare earths, zircon, ilmenite, and rutile, this project aims to become a major global producer of these essential minerals. Furthermore, it is expected to create up to 200 direct jobs, injecting economic growth into the region.
Victoria’s pursuit of renewable energy infrastructure has not been without challenges. In May, a group of farmers took their concerns regarding transmission line construction to the Supreme Court of Victoria, reflecting broader opposition to renewable energy development. Similar conflicts have also emerged in New South Wales concerning the Hume Link transmission line. Meanwhile, the Australian Energy Market Operator emphasizes that over $12 billion in investments in new transmission lines should commence promptly to ensure a secure energy supply in the coming decade.
At the state level, Victoria has allocated $1 billion to reinstate the State Electricity Commission specifically for renewable energy investments. Critics argue that this move may adversely impact the private sector. The Victorian Liberal Party has even accused Labor of being responsible for rising energy prices, intensifying political debates surrounding renewable energy.
While Labor aims for 82 percent renewables by 2030, it falls short of The Greens’ more ambitious goal of reaching 65 percent renewables by the same year. At the federal level, Labor has pledged a 43 percent reduction in greenhouse gas emissions by 2030 from the 2005 levels, forming part of the overarching objective of achieving net-zero emissions by 2050.
The decarbonization efforts in Australia are gaining momentum, with renewable electricity generation quadrupling between 2000 and 2021, significantly increasing the national share of renewables in electricity generation to 27 percent. According to the International Energy Agency (IEA), Australia’s renewable energy capacity is projected to expand by 85 percent by 2027 due to the agreed-upon renewable energy targets.
While renewable energy has its critics who argue that wind and solar power cannot provide reliable baseload power, the rising costs of natural gas underscore the imperative to transition to cleaner energy sources.
Victoria’s mining sector reforms mark a significant step toward reshaping the state’s energy landscape and bolstering its commitment to renewable energy development. By updating regulations and streamlining processes, Victoria aims to strike a delicate balance between meeting the growing materials demand for infrastructure and safeguarding the environment and communities. With key projects on the horizon and a clear vision for the future, Victoria has set its sights on becoming a global leader in the renewable energy supply chain.
