Madeleine King (Brand, Australian Labor Party, Minister for Northern Australia) Share this | Hansard source

by leave—The economic story of modern Australia has turned on a few key moments in history. The gold rushes of the 1800s transformed the Australian colonies, built our cities and brought workers and families from around the world. In the 1950s investment from Japan opened the iron ore industry in the Pilbara as Tokyo sought to rebuild after the Second World War. That investment laid the foundations for the industry that underwrites so much of our prosperity today and which will continue to be the backbone of our economy. The development of our LNG industry in the 1980s and nineties brought further wealth whilst also providing energy for homes and businesses, not just in Australia but right across Asia.

Today we stand on the cusp of the creation of a new resources industry. This industry offers not only economic prosperity but solutions to the challenge of our age: the fight against climate change. It is imperative that we get this right and that we get the policy settings right for the challenges and opportunities that lie ahead. According to the International Energy Agency, the world's total demand for the minerals necessary for the development of clean-energy technologies is forecast to double or even quadruple by 2040. By 2030 electric vehicles will represent more than 60 per cent of vehicles sold globally. Demand for battery minerals such as lithium is forecast to increase by 40 times on 2020 levels by 2040, while demand for cobalt and graphite will rise by approximately 20 times and demand for rare earth elements could increase by seven times over the next 20 years. More mining is required to meet this demand. Recent analysis by the IEA suggests the world will need around 50 new lithium mines, 60 new nickel mines and 70 new cobalt mines to meet carbon emission goals by 2030. These statistics take on extra weight when we consider that supply chains for much of these minerals are currently heavily concentrated. This is particularly concerning for countries that do not possess such minerals and are reliant on international partners.

The extraordinary geology of our unique island nation gives Australia its remarkable endowment of the minerals required for the world to reach net zero and for the broader energy transition. The materials needed to build the world's batteries, wind farms and solar panels all lie beneath the surface of this continent. We are the world's largest producer of lithium, the third-largest producer of cobalt and fourth-largest producer of rare earth elements. There is much more to do to capitalise on the unique opportunity provided by net zero and the bounty of our critical minerals endowment. Our trade and investment partners are increasingly looking to Australia to provide critical minerals that will feed diversified global supply chains in the energy transition.

We are also working with international partners to help projects link to emerging markets in countries like the United States, the United Kingdom, Japan, Korea, India and the European Union and its member states. The world is waking up to the opportunities here. The world understands that the building blocks of the technology that we need to fight climate change are here. It seems barely a week passes that we don't receive an approach from a foreign partner to discuss opportunities to develop Australia's critical minerals and rare earth element projects. We must look to grow our downstream capabilities in areas of competitive advantage by enabling more processing and refining of minerals onshore in Australia and realise the benefits derived from adding value to our resources.

This is already happening. Earlier this year, for example, the US company Albemarle said it would spend more than $2 billion to build two extra processing trains at its Kemerton site south of Perth to double its production of lithium hydroxide, that essential component of lithium batteries.

The Albanese Labor government's new critical minerals strategy sets out a pathway for Australia. It is a long-term framework to guide policy direction and government consideration. It is not a shopping list of items. While we prosper from our wealth of resources, Australia cannot outspend economies significantly larger than our own. I understand that some have become accustomed to a different load of policymaking, where financial support has been given primacy over strategy and planning. Financial investment by governments to support strategic projects where the market cannot is, of course, very important, and it can indeed be critical. But it is wise to establish what strategic investment looks like with the benefit of a well thought out, considered an inclusive strategy.

This is what I have done. We are laying a foundation for how the government will support our critical minerals sector and ensure it gets access to the kind of domestic and foreign capital it needs and the benefits it will deliver for all Australians. The strategy will help to create diverse, resilient and sustainable supply chains; build our sovereign capability in critical minerals processing; extract more value from our resources, resulting in more jobs and economic activity for our regions; and help deliver net zero by 2050.

The strategy highlights six focus areas, including developing strategically important projects, attracting investment and building international partnerships, growing First Nations engagement and benefit sharing, promoting Australia as a world leader in environmental and social governance, unlocking investment in enabling infrastructure and services, and growing a skilled workforce.

I am pleased to see Australian industry support the strategy I released this week. The Minerals Council of Australia has described the strategy as 'a leap forward, providing a coherent framework for integrated already well developed policy areas'. The Association of Mining and Exploration Company has said the strategy provides 'an enduring framework to build and shape Australia's critical minerals industry into the future'. US based chemicals manufacturing company Albemarle and Australian rare earth company Iluka have also welcomed the release of the strategy.

The Future Battery Industries Cooperative Research Centre has said the strategy will 'push Australia forward, and the government's targeted, concerted and proportionate approach will amplify the investments already made by the Australian government, private industry and the research community'. The Chamber of Minerals and Energy of Western Australia says the strategy provides 'a way forward for the future'. The Albanese Labor government welcomes this support, but we have much more to do, and this strategy will inform future budgetary decisions.

The recent critical minerals compact between Australia and the United States offers the possibility for close engagement with the US. The compact is a positive step forward, and our bilateral work with the US will build reliable and sustainable clean energy supply chains. Through the signed statement of intent, Prime Minister Albanese and President Biden directed both governments to report back on the progress of the compact by the end of 2023. As part of that compact, I will spearhead a task force on critical minerals, working closely with the US National Security Council. The task force will work with industry leaders to develop and expand reliable, responsible and secure global access to critical minerals, strengthening global supply of those critical minerals. I'm working with my counterparts to agree next steps in the coming weeks, and agreed actions will be communicated and announced as appropriate.

Additionally, President Biden has announced that he will ask Congress to add Australia as a domestic source in title 3 of the Defence Production Act. Currently Canada is the only other country to enjoy that status. This has the potential to streamline industrial based collaboration and build new opportunities for US investment in the production and purchase of Australia's critical minerals, critical technologies and other strategic sectors. Being added as a domestic source will enable the US government to directly invest in Australian projects—for example, in critical minerals technologies or technologies relevant to AUKUS.

Our traditional minerals, such as iron ore and bauxite as inputs to steel and aluminium, will also be integral. Copper production was once seen as secondary to gold mining, but, with the increasing need for copper wiring in electric vehicles, copper might one day be as sought after as gold. Steel, in particular, will play a key role in all renewables. Each new megawatt of solar power requires between 35 to 45 tonnes of steel, and each new megawatt of offshore wind power requires 120 to 180 tonnes of steel. In turn, making 180 tonnes of steel to produce a new megawatt of offshore wind power needs at least 288 tonnes of iron ore and 139 tonnes of metallurgical coal.

Similarly, gas will remain crucial for some time. Some fail to acknowledge this, but Australia's coal and gas resources are essential for energy security, stability and reliability both domestically and across the Asia-Pacific and will be needed for decades.

As I've said, one of the focus areas of this strategy is skills. Exploiting our critical minerals and reaching net zero by 2050 will need all the expertise of the resources sector. It will need our young people to understand that a career in the resources sector is a career supporting the race to net zero. This nation needs geoscientists, geophysicists, chemists, metallurgists and engineers to find and process the critical minerals the world needs to decarbonise and stop dangerous climate change.

As minister, I want to see genuine partnerships between the sector and First Nations peoples. Fifty years ago, in 1973, Labor great Gough Whitlam said:

High among my government's ambitions is to give natural rights to our Aboriginal people. We are determined that their interests will be preserved in any mining operations.

This still rings true today, given more than 60 per cent of resources projects operate on land covered by native title claim or determination. Think about that for a minute: the sheer wealth and prosperity that has been enjoyed by Australians from coast to coast is thanks to the gracious and dignified consent of the First Nations people.

This land always was and always will be Aboriginal land, and we should respect and celebrate the fact that we share this land with the oldest continuous culture on earth. Our prosperity lies in working with First Nations people to mine their land, but they are still suffering from a wealth and health gap that shapes us all. First Nations people are entitled to expect Australia's resources sector will invest in local communities and stand up for the things that matter to them. While the resources industry is the highest employer of Indigenous Australians as a proportion of the total workforce, they must continue providing Indigenous employment and supporting economic participation for First Nations women and men, and providing local recruitment, training and education programs as well as dedicated procurement from Indigenous suppliers. The resources sector has made significant progress in this regard and I acknowledge that commitment.

Given its relationship and record with First Nations communities, I have called for the resources industry to publicly back the Uluru Statement from the Heart and the referendum to be held later this year to recognise Aboriginal and Torres Strait Islander people in the Constitution through the Voice to Parliament. I am pleased that many of Australia's major resource companies, including BHP, Woodside, Rio Tinto and Wesfarmers, among others, will support the recognition of Indigenous Australians through a Voice to Parliament. They will be powerful advocates to help progress this crucial national agenda. This is a once-in-a-generation opportunity to recognise First Nations people in the Constitution in a meaningful way. As I have said often, the road to net zero runs through the Australian resources industry. This Critical Minerals Strategy is another step along that road—a road the rest of the world is travelling. I thank the House.

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