NAIF ready to seize the opportunity to grow northern Australia

The Northern Australia Infrastructure Facility (NAIF) has welcomed the passing of legislation that will provide more financial assistance to key projects across an expanded region.

Following approval of the Northern Australia Infrastructure Facility Amendment (Miscellaneous Measures) Bill 2023, the NAIF now has an additional $2 billion allocation, taking the total financing available for infrastructure projects to $7 billion.

The NAIF can also now support economic development in the Indian Ocean Territories communities of Christmas Island and the Cocos (Keeling) Islands. The NAIF will now engage with local stakeholders on how it can best support the development of local facilities and services.

Welcoming the passing of the Northern Australia Infrastructure Facility Amendment (Miscellaneous Measures) Bill 2023, NAIF CEO Craig Doyle said: “NAIF actively works with project proponents to identify and unlock significant new investment opportunities in northern Australia. The additional $2 billion allocation for NAIF means more investment will go to more projects including for the first time, to the Indian Ocean Territories of Christmas Island and the Cocos (Keeling) Islands.

“We look forward to engaging with key stakeholders there shortly on how NAIF can best support economic development in the territories. We thank Parliamentarians for their ongoing support of NAIF as we work towards unlocking the region’s undoubted potential.”

To date NAIF has approved $4 billion of financing commitments to infrastructure projects across the north ranging from large-scale critical minerals and energy developments to social infrastructure – including universities – to airport upgrades, agriculture, and aquaculture.

As part of the Australian Government’s new Critical Minerals Strategy, announced by Minister for Resources and Northern Australia Madeleine King, the NAIF will earmark $500 million of funding to develop critical minerals projects.

The NAIF has already approved loans of $655 million to four critical minerals and rare earth projects worth more than $2.2 billion. These projects are forecast to deliver a $5.5 billion boost to the Australian economy, supporting a forecast 2,445 jobs.

Mr Doyle said critical mineral projects currently under consideration by NAIF include developments in rare earths, vanadium, lithium hydroxide, high purity alumina and silicon.

He said: “We know that the critical minerals sector is key to the transition to Net Zero, vital to Australia’s strategic interests and has the potential to boost economic development in our regions, particularly northern Australia.

“The NAIF has a key role to play as part of the Australian Government’s strategy whether that be from investment – with a commitment of $500 million – or through our expertise and knowledge of the north.

“The NAIF team shares a passion for northern Australia and possesses a deep understanding of the region. This familiarity allows them to recognise the area’s vast potential and abundant opportunities. Their expertise in the unique challenges and characteristics of northern Australia helps guide their investment decisions and support the sustainable growth of the region.

“We look forward to building on our previous support for the critical minerals sector and working with key Australian Government partners including the Critical Minerals Office, Export Finance Australia and Clean Energy Finance Corporation, broader industry and communities in realising the north’s exciting critical minerals ambitions.”