Australia’s critical minerals moment

Australia’s mining sector is entering a decisive moment as global competition for critical minerals intensifies, with the nation uniquely positioned to convert geology into geopolitical and economic leverage, according to BDO’s Annual Mining Report 2026.

The report found that global mining is at an inflection point, driven by accelerating demand for critical minerals essential to electrification, defence and large-scale data centres, alongside record gold prices and rising government intervention.

BDO Global Leader of Natural Resources and Energy, Sherif Andrawes, said that for Australia, one of the world’s largest producers of lithium, copper, nickel, rare earths and gold, the stakes are high.

“Australia is no longer just a reliable supplier of raw materials, it is a strategic partner in global supply chains that are being actively reshaped by geopolitics,” said Sherif.

“The countries that can deliver secure, transparent and scalable supply will define the next phase of the energy transition, and Australia sits firmly in that group.”

BDO’s analysis shows demand for critical minerals is being reinforced not only by decarbonisation, but by defence spending and the rapid expansion of AI and data infrastructure.

Copper demand continues to surge, gold prices rose sharply on safe-haven demand, and rare earths remain strategically sensitive as governments seek to reduce reliance on single jurisdictions.

“For Australia, this is both an opportunity and a test,” Sherif said.

“We have world-class resources, stable regulation and strong ESG credentials, but future competitiveness will depend on how quickly we move beyond extraction into processing, refining and downstream capability.”

The report highlights Australia’s growing role in allied supply chain strategies, including formal agreements with the United States on rare earths and critical minerals.

At the same time, it warns that price volatility, rising costs and slowing exploration investment could undermine long-term supply if not addressed.

“Capital is more selective, timelines are longer and community expectations are higher,” Sherif said.

“Australian miners that invest in technology, productivity and genuine community engagement will be the ones that attract capital and secure approvals in this environment.”

BDO also points to recycling and circular economy models as an underutilised lever, noting recycled minerals can generate around 80 per cent fewer emissions than primary production.

“The next decade will reward miners who think strategically, not cyclically. Australia has a narrow window to lock in its position as a critical minerals powerhouse and the decisions made now will echo for decades.”
 

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For media enquiries:

Tate Papworth 
Manager, Media 
E: Tate.Papworth@bdo.com.au 
Ph: 0433411189