Australia’s resources sector significantly adds to the nation’s prosperity and standard of living. It accounts for around two‑thirds of Australia’s total merchandise exports and is the largest industry for foreign direct investment (DISR 2025). The resources sector accounts for 22% of national emissions and must contribute to emissions reductions (DCCEEW 2025a). The sector is a major employer, predominantly across regional or remote locations, and is an important employer of First Nations people.
Australia is a world leader in the export of natural resources and energy commodities. Into the future, global demand for these commodities will shift, with forecast declines in traditional energy commodities in response to investment, technology advancement and policy settings. However, Australia aspires to be a leading exporter of the energy and mineral resources that will be crucial for the global energy transition.
Australia’s continued success as a reliable exporter will depend on its ability to scale up production of the critical minerals and low-emissions commodities required for the global transition towards renewables. These exports will be key to the nation’s sustained prosperity, with new opportunities emerging in critical minerals, rare earths and green metals, supported by the Future Made in Australia agenda.
The Resources Sector Plan and overarching Net Zero Plan provide policy certainty to support an uplift in investment and innovation for a successful transition. This will make sure the sector remains competitive, resilient and central to global decarbonisation.
The Resources Sector Plan: the path to a thriving sector in a net zero world
The Resources Sector Plan (RSP) is one of 6 sector plans underpinning the Australian Government’s Net Zero Plan. Australia has legislated greenhouse gas emissions reduction targets of 43% below 2005 levels by 2030 and net zero by 2050. The government has just announced an emissions reduction target of 62–70% below 2005 levels for 2035. The Net Zero Plan identifies 5 priority decarbonisation actions to reduce key emissions sources across the economy:
- Decarbonise and expand the electricity network
- Electrify activities wherever possible and improve energy performance and materials efficiency
- Switch to low ‑carbon fuels
- Innovate to expand emissions reduction solutions
- Scale up carbon removals to balance residual emissions
The RSP supports the Net Zero Plan and demonstrates how reducing the emissions as well as emissions intensity of the resources sector will be a vital contributor to Australia’s net zero future, and its role as a global partner in supplying the materials required for this transition.
The plan builds on Australia’s reputation as an attractive trade and investment destination. It outlines Australia’s potential to become a reliable supplier of critical minerals, clean energy embedded products and clean energy commodities to international partners, to support their own paths to net zero.
The RSP considers the opportunities the transition presents to Australian businesses, workers and communities. It has been developed by harnessing the expertise of the Climate Change Authority (CCA), the Treasury, Geoscience Australia and the Commonwealth Scientific Industrial Research Organisation (CSIRO). It has also been informed by the analysis and sector knowledge of the Department of Industry, Science and Resources. Importantly, it has been informed by widespread engagement with a large cross‑section of stakeholders.
Insights from stakeholder engagement
New technology developments and carbon management solutions will also be critical to achieve net zero. Many companies are leading the way by trialling equipment that reduces diesel consumption, minimising venting and flaring, developing their own new carbon capture technology, investing in multi-billion-dollar carbon capture and storage projects, looking at opportunities to adopt circular economy principles or investing in expanded renewable energy generation. Methane abatement technologies are an important focus for coal and gas extraction industries, with ventilation air methane abatement technology particularly important for underground coal mines, along with technology enhancements in the detection and measurement of methane emissions.
The resources sector is working on lowering its emissions intensity because demand is growing for lower emissions commodities and having a credible pathway to net zero is key to the sector’s social licence. Communities affected by the transition must be supported to participate in the net zero economy. This will require inclusive planning and decision-making processes that reflect community needs, with potential to share in the benefits.
The Resources Sector Plan includes insights from consultation with a wide range of stakeholders, opportunities for technology development and highlights cross-cutting considerations that must be taken into account when developing new policies. The accessibility of energy, whether in the form of electricity or low-carbon liquid fuels, has been a recurring theme. Together, the 6 sector plans and Australia’s overarching Net Zero Plan harness the nation’s comparative advantages to unlock the economic opportunities of the transition to net zero.
Scope of the Resources Sector Plan
The resources sector covers exploration and production of minerals, oil and gas, and coal resources. The sector also covers mine closure, decommissioning and rehabilitation.
Production
Production includes resource extraction and, depending on the commodity, any additional on-site processing as well as limited minerals processing. The RSP focuses on the production activities in its 3 major sub‑sectors: minerals, oil and gas, and coal resources.
Mineral resources
Australia has a rich minerals endowment. In 2023, Australia ranked as top global producer for aluminium ore (bauxite), iron ore and rutile, as well as lithium which is important for battery storage technologies. Australia also hosts the largest share of economic demonstrated resources for gold, iron ore, lead, rutile, uranium, vanadium, zinc and zircon (GA 2024b). These are currently mined predominantly across Queensland, Western Australia and Victoria (GA 2022).
The government designates lists of critical minerals and strategic materials, that are essential to the global transition towards net zero. These resources support a range of strategic industrial applications. During 2023, Australia was a top 5 producer of 7 critical minerals and 2 strategic materials (GA 2024b). Australia is a world leader in reserves of key critical minerals. Under the Future Made in Australia agenda, this sub‑sector will expand with the growth of critical mineral concentration and refining capability.
Oil and gas
In 2022, three‑quarters of Australia’s natural gas resources were produced from conventional sources, and the remaining quarter from coal seam gas sources (GA 2024f). Conventional gas can be found both onshore and offshore (CSIRO 2021) and is often co-located with liquid hydrocarbons such as crude oil, condensate and liquefied petroleum gas (GA 2024a). Comparatively, unconventional gas is the collective term for gas accumulations such as coal seam, tight and shale gas. Unconventional gas resources are currently being produced and developed in onshore basins in Australia (CSIRO 2021).
The majority of Australia’s conventional gas is produced offshore in Western Australia, with approximately 93% of Australia’s conventional gas resources located on the North West Shelf, offshore Western Australia. In 2022, the majority of Australia’s coal seam gas was sourced onshore from the Bowen and Surat basins in Queensland. Australia also has onshore coal seam gas reserves and contingent resources in New South Wales, while pilot projects for a significant shale gas resource are currently being appraised in the Northern Territory (GA 2024f).
Over recent decades, the geographic profile of gas supply has evolved, with newer developments increasingly located in regions further from major demand centres. This shift has introduced additional transport and infrastructure requirements, which may have implications for supply costs and system planning.
Liquefied natural gas (LNG) can be produced using either conventional or unconventional gas. Australia is a leading exporter of LNG and accounted for a fifth of the global LNG trade in 2023–24 (DISR 2025). Australian gas supports our standard of living and energy security, currently providing over a quarter of our energy needs. It is needed for high‑heat industrial processes and as a critical feedstock for the manufacturing industry. Australian LNG exports support and sustain millions of households and businesses across Asia and will be pivotal to the ongoing energy security of the region for decades to come.
Australia produces a small amount of crude oil, condensate and liquefied petroleum gas (LPG), predominantly in Western Australia (GA 2023b).
Coal
Most of Australia’s coal production is black coal (GA 2023a). Its primarily used for 2 major applications:
- metallurgical coal, used in steelmaking
- thermal coal, used for electricity generation (GA 2024e).
In 2023, Australia had the world’s largest share of metallurgical coal exports (46%), and the second‑largest share of thermal coal exports (19%) (DISR 2025). Black coal is mined in several Australian states, with Queensland and New South Wales having the largest reserves (GA 2024d).
Australia’s coal exports are currently largely directed to key Asian markets, including Japan, India, China, South Korea, Taiwan and Vietnam (DISR 2025). These long‑standing trade relationships support regional energy security and reflect Australia’s role as a reliable trading partner.
Mine closure, decommissioning and site rehabilitation
Essential to successful modern resource extraction is stewardship of the natural environment and care for country through responsible mine closure, decommissioning and rehabilitation practices.
In the context of onshore activities, this can include removing hazardous materials, stabilising structures and land restoration, with a view at supporting post‑mining land use (CSIRO 2023b).
Decommissioning is the final stage in the production lifecycle. As facilities reach the end of their productive life, the leftover infrastructure must be stripped apart and removed. The offshore oil and gas industry will spend an estimated $60 billion to decommission offshore oil and gas infrastructure over the next 5 decades.
Effective rehabilitation not only reduces environmental impacts, but also contributes to improved social licence, stronger economic output for the local area, and emissions abatement from carbon sequestration achieved through land‑based restoration.
An Australian decommissioning and rehabilitation industry can support Australia’s move to net zero. It can support growth of domestic industrial capabilities, like recycling, which will assist in the transition. A decommissioning and rehabilitation industry will also play a key role in the continued protection of our environment by ensuring Australia continues to meet the robust environmental standards under Australian and international law.
Exploration and other mine support services
Exploration and mine support services are also part of the resources sector. These additional activities include exploration, drilling operations, mine site preparation, mine site closure operations, as well as mine rehabilitation and remediation. Together, these activities generate 1% of overall resources sector emissions (DCCEEW 2025a).