Australia's Miners Strike Policy Gold With Labor Reelection: What's Next?

The Australian mining sector has welcomed Prime Minister Anthony Albanese and the Labor Party’s re-election in the May 2025 federal election, as this outcome provides policy certainty at a crucial time for commodities and energy transition materials.

During the campaign trail in April, Albanese responded to U.S.-China tariff tensions by proposing a A$1.2 billion ($780 million) Critical Minerals Strategic Reserve, a move he called necessary for Australia's strategic positioning.

"Increasingly uncertain times call for a new approach to make sure Australia maximizes the strategic value of critical minerals," he said on April 24, according to S&P Global.

With the strategic reserve and the A$7 billion ($4.54 billion) Critical Minerals Production Tax Incentive, Australia’s downstream processing and mineral stockpiling ambitions are shifting into high gear.

Warren Pearce, CEO of the Association of Mining and Exploration Companies, sees the outcome as a green light for long-term resource policy.

"With a mandate now secured, it is time for action on key policy initiatives that will support long-term investment and drive Australia's international competitiveness, especially in critical minerals," Pearce said in a statement.

He highlighted the CMPTI as a measure that would “level the playing field with global competitors” and pointed out the urgent need to extend the Junior Minerals Exploration Incentive, calling exploration the sector’s "lifeblood.”

Bloomberg noted the Australian commodity markets should benefit from the political clarity, seeing a tailwind for local energy and clean tech stocks amid favorable policy continuity. The reelection avoids a hung parliament, which could have empowered Greens or climate-focused independents to push more aggressive anti-mining agendas.

Get Started

Earn 7.2% — No Matter What the Fed Does

Markets expect rate cuts — but your earnings don’t have to suffer. Lock in 7.2% until 2028 from ten individual bonds.

Get Started

"You're getting a continuation of the status quo, for better or worse," said Kyle Rodda, a senior analyst at Capital.com, while Nick Twidale of AT Global Markets cautioned that "tariffs will have a negative impact on the Australian economy," and broader international forces, not domestic leadership, would ultimately shape market direction.

"The next 50 points in Aussie isn't going to come from what Australia does, it's going to come from what the U.S. does," he added.

While policy ambition is high, structural issues weigh heavily on investor confidence. Rebecca Tomkinson, CEO of the Chamber of Minerals and Energy WA, stressed that environmental permitting delays, high energy costs and complex regulations undermine Australia’s investment fundamentals.

"Streamlining and accelerating federal environmental assessments goes to the heart of reversing the recent decay in Australia's investment fundamentals," she said in a press release. While supportive of the Critical Minerals Strategic Reserve, Tomkinson warned against market distortion and called for safeguards that protect existing operations.

"Investors have options. As a nation, we need to start acting like we're serious about competing for their capital," she added.

Read Next:
• BHP-Lundin Venture Confirms Largest Greenfield Copper Find In 30 Years

Photograph: Shutterstock