5 ASX mining shares with projects being spruiked by the Australian Federal Government

ASX mining shares including Core Lithium Ltd (ASX: CXO) and Iluka Resources Limited (ASX: ILU) are featured in the Federal Government's Australian Critical Minerals Prospectus released this week.

The prospectus showcases 52 high-quality, investment-ready critical minerals projects that the government hopes will attract further local and international investment.

Let's check out which ASX mining shares have projects being spruiked by the government.

5 ASX mining shares with projects in the prospectus

The prospectus forms part of the Critical Minerals Strategy 2023-2030.

The strategy aims to make Australia a globally significant producer of raw and processed critical minerals.

The purpose of the prospectus is to attract investment from local and global investors to help Australia develop new mines and build the new industries it needs to become a renewable energy superpower.

Here are five ASX mining shares featured in the prospectus:

Core Lithium Ltd (ASX: CXO)

Core Lithium is Australia's newest lithium producer. The government is spruiking its BP33 underground mine, which is currently the subject of an updated Feasibility Study ahead of a final investment decision (FID) due in the first quarter of 2024.

The Core Lithium share price is 19 cents, down 1.54% today and down 83.3% over the past 12 months.

Liontown Resources Ltd (ASX: LTR)

In the prospectus, the government tells investors that Liontown's Kathleen Valley hard-rock lithium project is world-class in scale and economics, with first production due in mid-2024. The government tells investors that Liontown will deliver US Inflation Reduction Act-compliant material to Tier 1 customers.

According to the prospectus:

Liontown is progressing studies into downstream processing options to convert spodumene concentrate into higher grade outputs. The Company is ideally positioned to be a fully integrated lithium producer to capture long-term value from mine to end-use in the EV market.

The ASX lithium mining share is currently fetching 98 cents. It's down 1.01% today and down 37.8% over the past 12 months.

Iluka Resources Limited (ASX: ILU)

The government is seeking funding to help Iluka build the Eneabba Refinery, Australia's first fully integrated rare earths refinery. It is due for commissioning in late 2025.

Also featured was Iluka's high-grade Balranald critical minerals deposit. It contains significant amounts of rutile, zircon, and other rare earths. Iluka began construction in August and expects this to take 18 months. Commissioning is currently scheduled for Q1 2025.

The ASX mining share is currently worth $7.20, up 1.7% today and down 36.1% over the past 12 months.

Neometals Ltd (ASX: NMT)

Neometals owns one of the world's largest and highest-grade hard-rock titanium and vanadium deposits.

The government says the company is open to discussions regarding project equity ownership, joint venturing, project financing and offtake for the Barrambie project. With a significant Mineral Resource Estimate and Ore Reserve, and a pre-feasibility study completed last May, the project is mine-ready.

The Neometals share price is 14 cents, down 2.14% today and down 83.5% over the past 12 months.

Renascor Resources Ltd (ASX: RNU)

The government is seeking backing for Renascor's vertically integrated processed graphite operation in South Australia. It will process graphite concentrate from the company's Siviour mine and concentrator on the Eyre Peninsula as well as from a battery anode material (BAM) processing facility in Bolivar.

Renascor completed the BAM Feasibility Study last year.

This ASX mining share is changing hands for 7.9 cents, up 1.3% today. It has fallen 70.7% over the past 12 months.

Updates to the Critical Minerals List

In addition to seeking private investment through the prospectus, the government has also committed $4 billion in funding for critical minerals supply chain businesses through its Critical Minerals Facility.

In December, the government also updated its Critical Minerals List. The list highlights urgently required minerals that are essential for modern green technologies, economies and security.

The government considers them crucial to our own transition to net-zero emissions. They are also important for the development of our advanced manufacturing industry.

In the recent update, the government added fluorine, molybdenum, arsenic, selenium, and tellurium to the list and removed helium.

The government has also introduced a Strategic Minerals List.

This list comprises six minerals considered important for the global energy transition but which are not currently in short supply. They are copper, nickel, aluminium, phosphorous, tin, and zinc.

Minister for Trade and Tourism, Don Farrell said:

Australia is on the cusp of a golden age in critical minerals development.

This Prospectus showcases many game-changing Australian critical minerals opportunities for international investors. We have an abundance of minerals with a strong regulatory environment, and a range of free trade agreements with countries in need of our resources.