Critical minerals, data centers, and workforce training for AI are at the forefront of a new economic strategy unveiled by Premier Jacinta Allan. Announced during her State of the State address at the Committee for Economic Development of Australia on Thursday, these policies aim to leverage Victoria’s existing strengths while capitalizing on emerging global trends.
Key among these initiatives is the approval of a new antimony exploration tunnel at Sunday Creek, located 24 kilometers north of Wallan in central Victoria. This decision paves the way for Southern Cross Gold to explore underground mining opportunities for gold and antimony, a critical mineral used in the semiconductor industry and renewable energy technologies.
Unlocking Victoria’s Mineral Wealth
Victoria’s mineral wealth, particularly its reserves of antimony, titanium, zirconium, and rare-earth elements, positions it as a key player in the global critical minerals market. The premier highlighted that the local industry could support over 7,000 jobs and generate $1 billion in royalties.
“We have Australia’s largest antimony deposits and its only operating antimony mine. And we know what to do with them,” Allan emphasized.
This development follows a new agreement between Australia and the United States, aiming to increase the mining and export of critical minerals, further strengthening Victoria’s economic prospects.
AI and Data Centers: A Vision for the Future
Allan also outlined plans for Victoria to become a leader in artificial intelligence (AI) development. She projected that advancements in AI could contribute $30 billion to the state’s economy over the next decade. However, she acknowledged the potential displacement of workers by AI technologies and stressed the importance of a balanced approach.
“I’m the daughter of a man who worked with his hands. I watched him made redundant with the stroke of a pen,” Allan remarked, emphasizing the need to protect workers.
To address these challenges, the government will introduce two AI-focused policies. The first aims to establish Victoria as a hub for data centers, which are essential for AI operations. A $5.5 million sustainable data center action plan will guide the strategic placement of these facilities, ensuring they are close to necessary resources without overburdening existing infrastructure.
Meanwhile, the Australian Bureau of Statistics reported a significant increase in spending on media and telecommunications infrastructure, driven by the global demand for data centers.
Workforce Transformation
To support workers affected by AI, the government has pledged $8.1 million for an “AI career conversion” program. This initiative targets sectors where rapid change is possible, offering retraining opportunities to over 1,300 at-risk workers.
“We’ll target the sectors where we can make the biggest difference, fast,” Allan stated. “And we’ll offer it to more than 1300 workers who are most at risk.”
Political Implications and Future Prospects
Allan’s announcements come nearly a year after her Economic Growth Statement, which aimed to boost private sector investment and affirm Labor’s economic credentials. As the 2026 election approaches, economic policy is expected to take center stage, with State Opposition Leader Jess Wilson focusing on job creation in her campaign.
In her address, Allan also defended her commitment to legislating the right to work from home, despite some business opposition. She expressed confidence that businesses would eventually embrace this policy.
“I’ve listened to their views. I respect them. I haven’t changed my mind,” she asserted. “And in the years to come, I think those businesses will change theirs.”
As Victoria positions itself at the forefront of critical minerals and AI development, the state’s economic landscape is set for significant transformation. The success of these initiatives will depend on strategic implementation and the ability to balance technological advancement with workforce protection.
