King accuses ‘anti-WA’ Dutton of jeopardising national security Tom RabeWA political correspondent
May 22, 2024 – 5.00am
Federal Resources Minister Madeleine King has accused Opposition Leader Peter Dutton of jeopardising national security and stoking class warfare by opposing the government’s multibillion-dollar production tax credits for miners.
Ms King will deliver an impassioned defence of the $27.8 billion production tax incentive scheme, arguing its benefits will extend far beyond mining, in a speech to The Australian Financial Review Mining Summit in Perth on Wednesday.
Federal Resources Minister Madeleine King. Trevor Collens
Mr Dutton has likened Labor’s scheme to a “tax cut for billionaires”, opening a rift between his party and major miners in Western Australia, a state critical to the Coalition’s election chances.
Billionaire Mineral Resources boss Chris Ellisonhit back at Mr Dutton on Tuesday, suggesting the opposition leader would realise “in the cold light of day” that “trying to build an industry in Australia that’s going to be around for the next 50 to 80 years is high value”.
Although WA’s Labor government backs the tax credit plan, its critical minerals strategy, to be released on Wednesday, diverges from the federal budget and its $500 million support for making batteries in Australia. Premier Roger Cook’s strategy says any future domestic battery manufacturing industry in the state will be “niche”.
Ms King will say nurturing the critical minerals industry via the tax credits will ensure Australian sovereignty and bolster the country’s relationship with the United States.
“[Mr Dutton’s] opposition is tone-deaf to the work the government is doing with the US administration to secure our critical mineral supply chains from disruption and manipulation,” she will say
“And we should be clear that supporting our critical minerals and rare earths industry is a matter of national security. Their decision to play politics on an important issue of sovereignty is mind-boggling.”
“The hypocrisy is [as] staggering as it is unbelievable,” Ms King will say. “Quite frankly this position is anti-resources and anti-WA.”
As the Albanese government moves to defend its multibillion-dollar plan to spur future investment in Australian mining, WA is expected to ramp up efforts to expand the state’s critical minerals processing capacity as the centrepiece of its economic diversification.
The Cook government’s updated strategy details challenges facing future domestic downstream manufacturing. It suggests WA Labor is less enthusiastic about the potential of a viable local battery manufacturing industry than its federal counterpart.
WA Premier Roger Cook wants the state to focus on mid-stream processing of battery minerals. Trevor Collens
It outlines a plan to increase the state’s capacity to produce battery-grade vanadium and graphite, high-purity alumina and minerals to meet surging global demand by seeking new international partnerships with countries and businesses.
The federal budget last week included $500 million for a “battery breakthrough” initiative to develop local battery manufacturing capabilities, and Prime Minister Anthony Albanese made a $100 million election commitment for a Queensland battery manufacturing precinct.
In a signal WA is unlikely to aggressively pursue downstream battery manufacturing, the state’s strategy says WA would remain open-minded to “niche opportunities” but would take a more targeted approach to developing its mid-stream processing capacity.
“We will take action where we’re well-placed to act, where our efforts will increase investment, and in a way that maximises outcomes for the Western Australian people,” Premier Roger Cook says in the strategy paper, which will be released on Wednesday.
“The Western Australian government will use a targeted approach to implement the strategy.”
The report outlines WA’s “fledgling” capabilities in the face of “strong international competition and relatively low domestic demand” as key factors that would need to be overcome to develop a battery manufacturing industry.
“As Australia’s primary source of battery chemicals, WA is well-placed to capitalise on the advantages of co-location to pursue niche battery manufacturing opportunities,” it says.
The Cook government a week ago announced a $500 million fund to prepare new industrial land in the state to enable further minerals processing.
“Right now, our priorities are a more efficient approvals system, planning and investment in common user infrastructure and targeted support for strategically important projects,” Mr Cook said.
The strategy notes the importance of skilled migration to the state at a time when Mr Dutton has flagged he wants to cut immigration to ease housing pressures.
“Western Australia will need to build on this skills base and continue to attract international talent to ensure our state has the workers and researchers needed to support industry growth,” it says.
With the future of WA’s nickel industry in limbo because of being undercut by cheap product from Indonesia, the strategy acknowledges WA’s high ESG standards are still not attracting a “green premium” on the international market.
The premier has vowed to work with the federal government to spruik its ESG credentials internationally, and WA is streamlining its approvals processes to encourage investment.
Mr Cook this week told the Financial Review that WA’s mining industry should not be deterred by the nickel crisis and should push ahead with adopting higher social and environmental standards.
He believes any new iteration of the Albanese government’s Nature Positive environmental reforms will offer miners an opportunity to bolster their credentials, which will eventually attract overseas investment.
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