Sophie Scamps (Mackellar, Independent) Share this | Hansard source

They're called 'critical' for a reason. Critical minerals and rare earths are the gateway to a decarbonised future. They are crucial to the manufacture of products including electric cars, wind turbines, electric vehicle batteries and solar cells. However, China has built a near monopoly on this industry, producing more than 90 per cent of rare earths and rare-earth magnets. Currently all G7 countries except Japan are heavily or exclusively reliant on China for these products. It's never good to put all your eggs in one basket, and the supply of these critical minerals and products is already under threat. Last month, China restricted the export of rare earth minerals and the products that use them as part of the trade fight with Donald Trump. And, as recently as two days ago, European carmakers warned that they may have to halt production in the next couple of days due to a shortage of chips and semiconductors following a dispute with China over control of the Dutch chipmaker Nexperia, which is owned by China's Wingtech. So it is clearly critical—pun intended—that we secure and diversify supply of these critical minerals and products. It is essential to the future security and prosperity of our nation and many of our allies.

The recent critical mineral deal struck with our close allies America, Canada and Japan represents an exciting opportunity for Australia, if we get it right. But the experience of our gas export industry stands as a stark warning of just how wrong we can get it. So let's explore our experience of gas exports in Australia, because, as the saying goes, those who cannot learn from history are doomed to repeat it. Currently, Australia is paying a higher price for our gas than many countries importing it from us. In a cost-of-living crisis, this putting unnecessary pressure on families and, in many cases, driving manufacturers to the wall.

Here in Australia we have an abundance of gas. Australia produces more than six times the amount of gas we need to supply our manufacturing industry, power stations, homes and businesses. We are the second largest exporter of LNG in the world, and 90 per cent of our gas is used for export. Gas exports use 13 times more gas than Australia's entire manufacturing industry each year, yet here in Australia the Tomago smelter, which supplies 40 per cent of Australia's aluminium, faces closure because of a so-called gas shortage and sky-high prices in Australia.

The so-called gas shortage in Australia comes on the back of consecutive federal governments putting Australia last instead of first. While manufacturing businesses face closure due to so-called energy shortages both on the east and west coast of Australia, governments continue to allow predominantly foreign owned fossil fuel companies to export record amounts of LNG. Japan, for example, buys 43 per cent of imported gas from Australia, and then, for the last few years, has onsold more than this amount for profit. We do not have a gas shortage problem in Australia; we have a gas export problem.

Thanks to the work of the Australia Institute, we know that over half of Australia's gas exports are given away for free, without gas companies paying any royalties or petroleum resources rent tax. Since 2015, gas companies have exported nearly $132 billion worth of liquefied natural gas from Gladstone, in Queensland. Six out of 10 of these gas companies have paid zero company tax on these exports. In Australia, more tax is paid by both nurses and teachers than by gas companies. No wonder the ATO has labelled the gas industry as a 'systemic nonpayer of tax'. We cannot let the same thing happen to our critical minerals industry.

Australian taxpayers will be investing billions into the creation of critical mineral mining and refining and processing in this country. As we embark on the next big resources opportunity, we must not repeat the poor policy decisions that have allowed multinational companies to profit off Australian gas with little return to the everyday Australian.

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