Nationals MPs Keith Pitt and Darren Chester have been elevated to federal cabinet in a ministerial reshuffle.

Prime Minister Scott Morrison announced the new line-up on Thursday alongside Deputy Prime Minister Michael McCormack, who survived Barnaby Joyce‘s leadership challenge on Tuesday.

Mr Chester has returned to cabinet, with his portfolios of veterans’ affairs and defence personnel given higher status, while Mr Pitt is the new resources, water and northern Australia minister.

Queensland senator Matt Canavan quit as resources and northern Australia minister to support Barnaby Joyce‘s failed attempt on Mr McCormack‘s leadership.

New resources minister Mr Pitt had previously served as Assistant Minister to yjr former Deputy Prime Minister, Mr Joyce, and as Assistant Minister for Trade, Tourism and Investment and Assistant Minister to Mr McCormack.

The Australian resources industry has welcomed Mr Pitt‘s appointment, with Chamber of Minerals and Energy of WA (CME) chief executive Paul Everingham saying he was looking forward to working with the new minister to further the growth of Western Australia’s resources sector.

“Minister Pitt has been supportive in his parliamentary speeches about the resources sector and recognises our significant contribution to the Australian economy through job creation and exports,” Mr Everingham said.

“The WA resources sector continues to underpin the national economy, and prospective growth in investment and exports will rely on our sector being internationally competitive.

“We look forward to working with Minister Pitt to facilitate this growth and capitalise on the billions of dollars invested in resources projects across the state.”

Australian Resources and Energy Group (AREEA) chief executive Steve Knott also said he looked forward to working with the new resources minister to grow the industry.

“Mr Pitt has big shoes to fill, but as a passionate regional Queenslander with prior experience in the trade and investment portfolio, we are sure he is up to the challenge,” Mr Knott said.

Also welcoming the announcement was Association of Mining and Exploration Companies (AMEC) chief executive, Warren Pearce.

Mr Pearce said the association would work with Mr Pitt to extend the Junior Mineral Exploration Incentive (JMEI), which was begun by his predecessor, Mr Canavan.

CME, AMEC and AREEA each thanked the former resources minister for his contribution to the sector.

“(Mr Canavan) has been a fierce advocate for our industry within government, and a proud champion our industry and community,” Mr Pearce said.

“He has also overseen the delivery of the Exploring for the Future program, and has been a major driver of pursuing Australia’s critical and battery minerals opportunity and the pursuit of local value adding.”

Mr Everingham echoed these statements, saying the former minister’s support for the resources sector was: “significant, particularly in the area of job creation, development of new resource regions and the promotion of emerging commodities such as rare earths and critical minerals”.

Mr Knott added: “It’s clear (Mr Canavan) understands how important the resources industry is to supporting communities across regional Australia, and that for our regional areas to prosper, both resources and agriculture must co-exist and cooperate”.

Meanwhile, new deputy Nationals leader David Littleproud has regained the agriculture portfolio, replacing Bridget McKenzie who quit over the sports rorts scandal.

Mr Littleproud, who remains drought and emergency management minister, has relinquished responsibilities for water.

NSW MP Mark Coulton – a key ally of Mr McCormack – will be minister for regional health, regional communications and local government.

Andrew Gee, also a McCormack backer, has been promoted to the outer ministry with responsibilities for regional education and decentralisation.

He also takes over as assistant trade minister.

Queensland MP Michelle Landry will continue as assistant minister for children and family services, while also assisting Mr Pitt as minister for northern Australia.

NSW MP Kevin Hogan has been promoted from the backbench to be Mr McCormack‘s assistant minister.