WA growing critical minerals connections

The release of generative AI chatbot ChatGPT in late 2022 marked a turning point in technology as a previously fictional concept became readily available to the public.Though AI as it stands is a far cry from Skynet — The Terminator’s highly-advanced AI hellbent on launching a nuclear attack on humanity — it may still be wise for society to proceed with caution.

After eight years of negotiations, Australia has signed a free trade agreement (FTA) with the European Union (EU) to lower trade and investment barriers between the regions.Yesterday, Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen announced the conclusion of negotiations for a FTA alongside a new security and defence partnership.The FTA will boost trade and cooperation on critical minerals, reinforcing the Australia–EU strategic partnership on critical minerals by establishing a clear framework that underpins market access and long-term cooperation across the full minerals value chain.Under the FTA, almost all Australian exports of manufactured goods and mineral resources to the EU will face zero import tariffs.Federal Trade and Tourism Minister Don Farrell says the FTA is a strategically important and economically valuable agreement at a time when Australian exporters are navigating choppy trade waters.“This hard-fought deal delivers real commercial gains for Australian exporters, farmers and producers into a market that has been difficult to enter or effectively closed for decades,” he said.“The removal of EU tariffs on most of Australia’s exports gives Australian exporters the opportunity to diversify trade with 27 European countries and 450 million consumers.”Australian companies, including small and medium-sized enterprises, will have better access to bid for lucrative European government contracts, worth about $845b annually, including for rail and construction.Australian professionals will also be able to travel to the EU more easily and will benefit from streamlined recognition of their Australian qualifications.Minerals Council of Australia chief executive Tania Constable says Australia is positioned to be a reliable, long-term supplier of the minerals essential to energy systems, defence technologies, advanced manufacturing and broader industrial resilience.“Mutual recognition of qualifications, professional services and specialist expertise will strengthen industrial capability by improving workforce mobility so critical engineering, technical and professional skills can be deployed more efficiently across mining, processing, manufacturing and defence?adjacent sectors,” she said.“The agreement improves market access for Australian miners, enhances investment certainty and provides a strong platform for increased EU investment into Australian mining projects, downstream processing and critical minerals supply chains.”The FTA will enter into force when both Australia and the EU have completed their domestic processes.

Continuing fuel supply constraints tied to the war in Iran are impacting Australia’s exploration and mining sector, with smaller operators now halting operations.Blue Cap Mining has halted gold mining operations and sent workers home in WA due to a lack of guaranteed fuel supply, according to the Association of Mining and Exploration Companies (AMEC).According to Australian Bureau of Statistics (ABS) data, mining accounted for 35% of diesel used in Australia during FY24.AMEC says that although reports from across the country indicate that fuel continues to enter Australia, disruptions within the domestic supply chain are preventing it from reaching the customers who need it most.“We keep being told there is enough fuel supplies to meet demand, it just needs to get to the right places,” AMEC chief executive Warren Pearce said.“Well, right now, that simply isn’t happening.“Case in point is Blue Cap Mining, who this week chose to halt gold mining operations and send workers home in WA, due to the lack of guaranteed fuel supply.“It’s the small mining operations and mining services companies, that like farmers, rely on fuel provision from independent fuel companies, that are bearing the brunt of fuel shortages.”The Australian Mining Review has reached out to Blue Cap Mining for comment.On March 3, Federal Climate Change and Energy Minister Chris Bowen moved to reassure the public, saying Australia was “currently in excess of the minimum stock obligations” for petrol, diesel and jet fuel.At the time, Minister Bowen said Australia had 36 days’ worth of petrol, 34 days’ worth of diesel and 32 days’ worth of jet fuel on hand at present.The latest weekly figures — for stocks held on March 10 and released in the first weekly update on March 14 — showed 37 days of petrol, 30 days of diesel and 29 days of jet fuel at a normal rate of consumption.Following this, the Federal Government temporarily relaxed Australia’s fuel quality standards, allowing higher-sulfur petrol to be supplied for 60 days to ease regional shortages.Minister Bowen said the move would add about 100 million litres a month of new domestic petrol supply that would otherwise have been exported to be blended.There have been reports that major fuel wholesalers have been rationing supply to independent operators servicing regional and remote areas.AMEC says it is the major fuel wholesalers, such as BP, Chevron, Mobil and Viva Energy, who control the flow of fuel to independent distributors and ensure established supply chains remain functional.“From what our members are telling us, there is a serious disconnect between these wholesalers and the independent distributors,” Mr Pearce said.“Independent operators know where the fuel needs to go, but they’ve been rationed down by the wholesalers.“We need to see the fuel wholesalers re-engage with independent operators and make sure the system that has worked flawlessly year on year for us, continues to work.”The Federal Government temporarily released up to 20% of the baseline Minimum Stockholding Obligation, making up to 762 million litres of petrol and diesel available to help ease fuel shortages in regional Australia.Fuel companies will only be allowed to relax their storage obligations if they are taking steps to prioritise supply to regional customers, allocate reasonable additional supply to bulk customers and are providing volumes needed to help meet usual demand — not to customers seeking to profiteer from price spikes, panic purchasing or stockpiling.

Yesterday, Australia’s Liberal Party abandoned its policy to achieve net zero — claiming emissions goals are driving up energy prices.