Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges the Prime Minister's successful visit to Washington DC, during which the United States-Australia framework for securing the supply of critical minerals and rare earths was signed with the President of the United States, a landmark bilateral framework on critical minerals and rare earths;

(2) notes that the agreement will:

(a) assist both countries in achieving resilience and security of critical minerals and rare earth supply chains;

(b) support Australian jobs in the mining, separation, and processing of these minerals through the use of economic policy tools and coordinated investment; and

(c) support defence and other advanced technologies; and

(3) recognises that this agreement:

(a) represents a further strengthening of the enduring Australia-United States alliance and a significant milestone in the longstanding friendship and cooperation between the two nations; and

(b) is delivering on the Government's Future Made in Australia agenda by driving investment in new export industries and providing good jobs in regional Australia.

Today I speak about a landmark achievement for Australia's economic and strategic future, the signing of the United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths, reached during Prime Minister Anthony Albanese's successful visit to Washington DC. This agreement represents a major milestone in the enduring friendship between our two nations and a deepening of the alliance that has shaped our shared prosperity and security for generations. It is also a cornerstone of our Future Made in Australia agenda, driving investment in new export industries, creating jobs in local communities and securing the resources and technologies that will power our clean energy future.

Australia is home to some of the most valuable deposits of critical minerals and rare earths in the world. Nearly the whole of the periodic table sits below the ground we stand on. These are called critical because they are essential to the world's transition to net zero: the batteries that store renewable energy, the turbines that generate it and the solar panels that capture it. But their importance goes further. Light and heavy rare earths are central to high-tech manufacturing, defence, artificial intelligence and clean energy. They power the data centres, precision systems and advanced technologies that underpin the evolving modern economy.

The US-Australia framework will help create diverse, resilient and sustainable critical minerals supply chains that reduce global market concentration and strengthen both nations' economic security. It provides the architecture for coordinated investment, mobilising financing from both governments and private industry to support mining, processing and manufacturing projects in both countries. It will diversify supply chains essential for defence and advanced technology manufacturing and will enhance investor confidence through transparency, clear regulation and shared standards. Through the framework both nations have committed to at least $1 billion each in funding to accelerate projects that strengthen critical mineral and rare earth supply.

This is about jobs. It's about making sure that regional Australians—those working in our mines, refineries and processing facilities—are at the centre of the industries that define the 21st century. It's about securing Australia's role in global supply chains so that, when the world looks for responsibly sourced, high-quality materials, they look to Australia first. And it's about strengthening the industries that underpin our national security, ensuring we have the materials we need for clean energy, advanced manufacturing and defence capability. The framework will also leverage our existing policy tools and international partnerships through the G7 Critical Minerals Action Plan, the Quad Critical Minerals Initiative and our Critical Minerals Strategy 2023-2030.

Australia and the United States have worked closely for years to identify and support projects of shared interests, and this framework formalises that partnership. Together we will invest in new critical minerals projects, enhanced mining and processing capability, promote high-standard production and cooperate to address market challenges such as unfair trade and price volatility. The Prime Minister said in Washington that this is about ensuring that our nations lead in the industries that matter most to our future prosperity, climate security and defence capability. Domestically the Albanese Labor government is reinforcing this international effort by establishing the Critical Minerals Strategic Reserve.

The reserve will help Australia manage volatility in global supply chains—something we saw last year in nickel and lithium—by allowing the government to act from a position of strength when markets are disrupted. It will operate through two key mechanisms: national offtake agreements to acquire or option key minerals at set prices and selective stockpiling to secure access to the minerals most vital to our national interests. A dedicated taskforce has been established to deliver this work and the reserve is on track to be operational by the end of 2026. Together the framework and the reserve reflect a clear vision: an Australia that doesn't just export raw materials but refines, processes and manufactures the products the world needs; a nation that turns our natural resources into long-term prosperity for regional communities; a trusted partner to our allies; and a global leader in sustainable, high-standard production. This is a future made in Australia—stronger, fairer and more secure. That is what good leadership looks like—a plan for a cleaner, stronger and more sovereign Australia.

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

Is the motion seconded?

Tony Zappia (Makin, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Melissa Price (Durack, Liberal Party, Shadow Minister for Science) Share this | Link to this | Hansard source

I rise to speak on the motion from the member of Spence regarding the signing of the United States-Australia framework for securing the supply of critical minerals and rare earths. There is no question that this agreement represents an important moment in the deep and enduring friendship between Australia and the United States. For more than 70 years our alliance has been the bedrock of Australia's security. Whether through ANZUS, the Five Eyes partnership or more recently AUKUS, the United States has stood with Australia in promoting peace, stability and prosperity in our region. This new critical mineral framework continues that tradition.

Critical minerals and rare earths are the building blocks of the modern economy. They are essential to the technologies that underpin both our national security and our economic security. Ensuring the resilience of these supply chains is not just an environmental or economic imperative; it's a national security imperative also. While we have seen out of APEC President Xi agree to lift export controls on rare earths to the United States, it is clear that the Chinese stranglehold on critical minerals and rare earths processing cannot continue. Australia has the resources the world needs, and there is a real chance for us to capture the full value of these resources right here at home. This shouldn't just be limited to the US, though. It should also extend to our European partners, particularly given the increased NATO investment in defence we've seen just recently.

What matters though is not the announcement but the execution, and this is where the opposition has real concerns. Importantly for Western Australians, who are right at the forefront of this agreement, there is still no clear plan on how this framework will translate into new processing facilities, new regional jobs—that's pretty important to the people in Durack—or new investment certainty for local industry. In fact, many in the sector say that the biggest obstacle to developing Australia's critical minerals capability is our government's own red tape. It took just two days following the signing of the deal for a big dark cloud in the form of the government's extreme nature-positive laws to jeopardise this agreement.

Despite the rebrand of the proposed environmental laws, the Business Council of Australia has identified several critical areas where the legislation should be amended. They've warned that reforms that don't strike the right balance will mean we won't get the critical minerals projects that are vital to Australia's future prosperity. There is a real irony here that, in the name of environmental protection, we will export these opportunities to countries who, quite frankly, couldn't care less about our environment. Does anyone really believe losing those opportunities here in Australia to China will benefit us or, indeed, our environment? Unfortunately, I expect the answer from those opposite is probably yes.

You only have to look at the antics of the member for Hasluck last week in this place to see that. Carrying a solar panel into the main chamber, the member for Hasluck said:

Under Labor we are delivering cleaner, cheaper, Australian made energy, built by Aussie workers and backed by Aussie resources, powering our economy now and into the future.

That sounds really good doesn't it? Nothing the member for Hasluck said in that statement is true. We haven't suddenly become cleaner under Labor's watch. Australia's emissions have barely dipped since Labor took office. They remain at 28 per cent below 2005 levels, which is exactly where they were when the coalition left office in 2022. Energy certainly isn't cheaper under Labor, with electricity costs going through the roof. Households have seen a 23.6 per cent rise over the past 12 months, which, as we have all seen, has pushed inflation once again outside the RBA's target band.

But, of course, it's not just households feeling the pinch. So is industry. As we know, Tomago, the largest aluminium smelter in Australia, confirmed last week they are consulting with their thousand workers over their future beyond 2028 due to soaring power costs. Another bailout is now being proposed. It would be the fourth of the year, following Whyalla, Glencore and Nyrstar. Most egregious, though, is the claim that it is Australian-made technology that is driving energy security.

So, to summarise, we have inflation rising, with Australians struggling to afford their bills, we have Australian heavy industry on the brink and we are increasingly reliant on foreign imports to power our economy. To me, that does not sound like Labor is delivering for Australia. It is definitely not our future made in Australia.

Luke Gosling (Solomon, Australian Labor Party) Share this | Link to this | Hansard source

I have spoken previously in this place about Arafura's nation-building Nolans project in the Northern Territory. It is the largest and longest live resource project in the Northern Territory ever. The Nolans project has the power to transform Australia's rare earths sector, establishing the Northern Territory as an essential processing and logistics hub through vital collaboration between government, industry and, importantly, local communities. It will open up logistics chains and develop the local businesses required to provide critical support and benefit neighbouring minerals projects in that region north of Alice Springs.

The Australian government has invested in the Nolans project with support from Export Finance Australia; the Northern Australia Infrastructure Facility, the NAIF; and the NRFC, the National Reconstruction Fund Corporation. The project will deliver over 600 construction jobs and a further 350 long-term operational roles. Arafura is a great example that Australia is home to some of the most valuable deposits of critical minerals and rare earths in the world—almost the whole periodic table, as the Prime Minster likes to remind us.

Critical minerals are critical to the world's transition to net zero, including for batteries, wind turbines and solar panels. Rare earths are essential for high-tech manufacturing and defence, the digital economy, artificial intelligence, data centres and clean energy. We've known for some time that our critical minerals are in demand, and we've been working to secure Australia's interest and create diverse resilient and sustainable critical minerals supply chains that reduce market concentration.

The United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths—otherwise known as the framework—which was announced during the visit to the United States last month by the PM and the Minister for Resources, Madeleine King, will take this cooperation forward with the United States. It will focus our bilateral efforts on overcoming barriers to the development of diversified liquid and free markets for critical minerals. It will strengthen investment in Australia's critical minerals sector by providing an architecture for Australian producers to access US financing—and vice versa; it goes both ways. It will also encourage greater investor confidence through enhanced market transparency and openness.

Through the framework we will invest in critical minerals projects, enhance the capabilities of our mining and processing sectors, promote trade in minerals produced to a high standard and encourage markets to reward those high standards of production. We will cooperate on challenges such as unfair trade practices and price volatility, and we'll improve regulatory processes and collaborate on mineral recycling and geological mapping. Australian consideration will be done in collaboration with our Australian financing facilities—the Critical Minerals Facility, the Northern Australia Infrastructure Facility and the National Reconstruction Fund Corporation—as previously mentioned. This framework commits us to providing at least $1 billion in funding to each project located in Australia and the United States. The framework will leverage existing policy tools such as the United States' industrial demand and stockpiling infrastructure and Australia's critical minerals strategic reserve.

The establishment of a critical minerals strategic reserve by our Albanese Labor government will maximise the strategic value of Australia's resources. Australia has the critical minerals and rare earths that the world needs, but supply chains and markets are volatile. We saw this with our nickel and lithium sectors last year, and that also impacted my electorate and the Northern Territory. The reserve positions us as a reliable supplier and a global competitor. It will allow Australia to work with partners on trade and market disruptions from a position of strength. It supplements other measures we are implementing to support a critical minerals sector, such as the production tax incentive. We are committed to having the reserve operational by the end of 2026. That is a very important thing when you consider everything else we're doing for critical minerals and rare earths in our nation.

Sophie Scamps (Mackellar, Independent) Share this | Link to 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.

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to 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.

Andrew Willcox (Dawson, Liberal National Party, Shadow Assistant Minister for Manufacturing and Sovereign Capability) Share this | Link to this | Hansard source

We've all seen the headlines—a new critical minerals deal with the United States celebrated as a triumph for democracy. But the truth is it's a geopolitical token gesture, leaving Australia dangerously exposed and underinvested in. We're being asked to cheer a handshake when what we need is a manufacturing revolution on our own soil, turning our raw minerals into value added products and keeping the profits and the jobs here at home.

Australia is still a quarry for China, not a manufacturer for the world despite being one of the top producers of critical minerals—lithium, nickel and rare earths. More than 90 per cent of our lithium is exported overseas, mostly to China, where it is refined and turned into products that we buy back at many times the cost. For 19 out of 20 strategic minerals, China dominates refining, controlling around 70 per cent of the global market. That is not just a trade issue; it is strategic vulnerability.

The deal with the US is a strategic band-aid designed to secure their supply chain, not to transform our industry. The real profits, high-skilled jobs, intellectual property and economic security that come from processing and manufacturing are still flowing out of this country. Without a plan to process minerals in Australia, we are locked into a low-value end of the supply chain. Even if we wanted to build these facilities, the reality is harsh. Our energy costs are crushing our competitiveness—once our advantage, now a crippling burden.

Industrial electricity in Australia costs up to twice as much as in Canada and the USA, making it almost impossible for local refineries and manufacturers to complete globally. The difference is not minor. It represents tens of millions of dollars in extra costs every year for energy-intensive operations like refineries, costs that make local processing economically unviable. Until the government delivers affordable, reliable and stable power, any plan for a domestic processing industry is nothing more than an economic fantasy.

Let's be clear: the United States needed this deal far more than Australia did. Their defence and clean energy industries are vulnerable because of China's chokehold. Australia had the US over a barrel. We held the leverage, a chance to negotiate tariff reductions for our steel, aluminium and other value-added exports, a chance to demand real investment in our industries, a chance to secure a genuine economic partnership. But what did we get? A handshake and a photo opportunity. The opportunity was squandered because this government prioritise headlines over substance, because the Prime Minister was too worried about negative press over his rocky relationship with President Trump. This was not diplomacy; it was capitulation disguised as achievement. This government could have turned our resources into a bargaining chip; instead, they handed it away with a thank you.

The minerals under our feet should be our prosperity, not someone else's economy. Without a cheap, reliable and clear plan for onshore processing, Australia will remain dependent on China and will continue exporting our resources and lose our manufacturing base. We need affordable firm baseload power, clean coal and gas, and nuclear must be on the table. Without it, investment will go offshore. We need real investment in incentives for domestic processing and smelting so Australian miners can complete on the global stage. We need a focus on value adding here in Australia, not exporting our jobs, our profits and our knowledge to other countries.

The Albanese government's mismanagement, collapsing manufacturers, energy instability and anti-investment policies are driving opportunities away from our soil. This government spends billions chasing net zero targets while our industries collapse under high power prices and regulation. That is ideological vanity, not leadership. We cannot dig our way to prosperity if we can't power it. It requires bold leadership, investment, certainty and domestic manufacturing. We deserve more than a handshake; we deserve a mining and manufacturing revolution. Australia must capture the value of our minerals to create high-skilled jobs and to secure a sovereign and prosperous future.

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

The time allotted for this debate has expired.