Foreign investment ‘urgent’ for critical minerals: KingBy Tom...

Foreign investment ‘urgent’ for critical minerals: King
By Tom McIlroy

Resources Minister Madeleine King will urge democratic countries to invest more in Australia’s critical minerals and rare earths to strengthen global supply chains and counter China’s dominance over elements vital to the energy transition.

Ms King will tell diplomats from Britain, Japan and Chile in a speech on Wednesday night that critical minerals had become “of vital strategic importance” to Australia and securing supplies of them was increasingly a matter of urgency.

“Australia’s critical minerals are now front and centre of our relationships with our international partners,” Ms King will say, according to excerpts.

“Australia’s resources sector has stepped forward into the heart of our alliance with the United States. And key trading partners in Asia and Europe are moving quickly to prioritise agreements on access to Australian rare earths and critical minerals.”

Addressing the Australian National University’s rare earth conference, she will warn a conflagration of global events over the past two years has sped up international competition to secure supply chains through trusted suppliers.

It was urgent that Australia secure abundant and affordable supplies of rare earths and critical minerals for the transition to net-zero status, and that supply chains could be relied on.

Australia had a competitive edge in geology, mining expertise and government approvals, but must work to maintain competitiveness amid global competition.

China currently dominates the critical minerals processing sector, with about 85 per cent of cobalt and 75 per cent of the world’s lithium processed in China.

“Developing our rare earths and critical minerals industry to its full potential will be impossible without foreign investment,” she will say.

“The government welcomes and encourages foreign investment in rare earths and critical minerals from all over the world.

“Foreign investment supports job opportunities for Australians, particularly in regional areas.”

Attending the event will be British High Commissioner Vicki Treadell, the nation’s trade commissioner for the Asia-Pacific, Martin Kent, Japan’s ambassador Kazuhiro Suzuki and Chile’s ambassador Jaime Andrés Chomali Garib.

“By growing our rare earths and critical minerals industries, Australia can diversify global supply chains, increase global supplies and help to reduce competitive tensions.

“The road to net-zero might run through Australia’s resources sector. But Australia’s resources sector also has a crucial role to play in making this world safer and more secure.”

Ahead of Prime Minister Anthony Albanese’s visit to the White House last month, the government announced plans for taxpayers to back another $2 billion into cheap loans and guarantees for critical minerals miners and processors to bolster the chances of tapping America’s mammoth green energy subsidy scheme known as the Inflation Reduction Act.

Mr Albanese and Ms King held talks with US officials in Washington, and confirmed they would double the amount available under the Critical Minerals Facility to $4 billion, helping projects get off the ground that were struggling to attract bank finance.

Under the facility, companies can apply for loans, financial guarantees or performance and warranty bonds to help establish themselves and develop export markets.

Ms King hosted the first Australia-US critical minerals taskforce meeting alongside US Commerce Secretary Gina Raimondo during the visit.

The taskforce agreed to immediately begin mapping of Australian and US supply chains to identify gaps and to nurture deeper co-operation between the two countries.

https://www.a f r.com/politics/federal/foreign-investment-urgent-for-critical-minerals-king-20231114-p5ejtu