Tania Lawrence (Hasluck, Australian Labor Party) Share this | Hansard source

I thank the member for Spence for this motion, which is directly relevant to the projects, the prospects and the livelihoods of the many people in his state of South Australia and in mine of Western Australia. Australia, of course, has some of the best deposits of critical minerals in the world. However, China currently controls up to 70 per cent of the global supply of critical minerals, around 85 per cent of the refining capacity and about 90 per cent of rare earths and magnet production. It announced export restrictions on rare earths and processing technologies early in October but then suspended that action, thankfully, after the summit between Presidents Xi and Trump this week. We learnt through COVID the importance of having dependable supply chains and how quickly and easily they can be disrupted. The need for greater self-sufficiency and firmer supply chains in critical minerals is palpable.

When Prime Minister Albanese met with US president Trump in October, he was able to have a meaningful discussion around the challenges that both face in relation to the need to have a dependable supply chain of critical minerals and rare earths. This resulted in the two leaders signing the United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths. This framework involves significant investment by both countries in forms such as guarantees, loans, equity, offtake agreements, insurance and regulatory facilitation. There will be a mining, minerals and metals investment ministerial within the first six months of the signing and the establishment a US-Australia critical minerals supply security response group, which will identify vulnerabilities and coordinate appropriate responses.

In April this year the government committed to establishing a critical minerals strategic reserve. This will act to protect Australia's strategic interests in relation to the predictable supply of these commodities. A total of $1.2 billion has been allocated to establish this reserve in the 2025-26 federal budget, and it is expected to be operational from the second half of 2026. It will include national offtake agreements whereby the government will acquire agreed volumes of critical minerals from commercial projects or establish an option to purchase at a given price, holding security over these assets as part of a strategic reserve, as well as selective stockpiling.

This is in addition to the $7 billion for the Critical Minerals Production Tax Incentive, which is designed to kickstart the processing and refining of these commodities. Recipients of that incentive will receive a refundable tax offset of 10 per cent of eligible costs of processing critical minerals in Australia. The offset will be available between 1 July 2027 and 30 June 2040, with a 10-year maximum for each project. This gives that long-term planning surety that industry needs.

The Critical Minerals Production Tax Incentive has received broad support from stakeholders. The Association of Mining and Exploration Companies stated that it was just in time. The Chamber of Minerals and Energy of Western Australia welcomed the announcement of the policy, which it had advocated for prior to the budget. The Smart Energy Council noted that a tax credit for critical minerals will help to ensure a stable and secure supply of these vital resources while also supporting the growth of a clean energy industry. Tesla commended the government for seizing the opportunity by supporting industry to take minerals as far down the value chain as possible. The Business Council of Australia stated that a well-designed CMPTI can provide the foundation for Australia to be a competitive destination for critical minerals processing and refining.

The union movement, too, is strongly supportive of the government's Future Made Australia plan and the critical minerals tax incentive, with unions including the AMWU, the AWU, the ETU and the MUA all engaging positively on the consultation. A number of mining and tech industries also participated in the consultation, including Western Australian companies Ardea Resources, Chalice, Liontown, Hazer Group and Pilbara Minerals. The government's policies and agreements, like the framework signed by the Prime Minister in Washington this month, will act to drive both investment and jobs growth in regional areas of Western Australia and across the country.

The Albanese government has assessed our situation, has seen what is needed and has backed in Australian industry. Together with people like our minister for resources, Madeleine King, and the Foreign minister, we are yet again proving ourselves on the world stage.

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