Australia and Japan elevate critical minerals cooperation

The Minerals Council of Australia (MCA) has called on the Federal Government to reform critical minerals project approvals, warning that opportunities will only translate into regional economic strength if projects can move from approval to construction and into long-term operation.The MCA’s submission to Federal Parliament’s Inquiry into the factors shaping social licence and economic development outcomes in critical minerals projects across Australia notes that regions with a significant mining industry had a lower unemployment rate and higher median income than the national average.Based on ABS data, the MCA found that across the Australian Mining Cities Alliance regions of Mount Isa and Isaac, Broken Hill and Karratha, East Pilbara and Kalgoorlie-Boulder, the unemployment rate was 3.58%, lower than the Australian average rate at the time of 5.1% while median income was $33,000 higher ($74,490 in mining regions against $41,860 Australia-wide).“Mining is the central driver to the long-term development of many regions across Australia which may otherwise have declined or even disappeared,” MCA chief executive Tania Constable said in a statement.“Based on many decades of experience by MCA members of delivering significant long-lasting benefits to regional communities, it is clear that the burgeoning critical minerals sector will create and sustain region-building economic infrastructure.“In towns with a fine line between viability and decline with small population bases, limited housing, stretched health and education services and high infrastructure costs., critical minerals development can be a stabilising force.“Long-life mining is the stable foundation that makes every other development pathway possible, helping communities to grow, services (particularly health and education) to remain viable and local businesses invest with confidence.”The MCA has urged the Federal Government to make it easier and more predictable for critical minerals projects to get built and operated in regional Australia.The submission outlines a range of measures, including strengthening planning, environmental and project approval systems; reforming the Native Title Act 1993 future acts framework; aligning migration and workforce training measures; coordinated infrastructure planning; cross-jurisdictional policy alignment and expanding targeted capability programs for local and Aboriginal and Torres Strait Islander businesses.The inquiry has not yet reported, but it is expected to culminate in a parliamentary report that could shape future policy on approvals, regional development and social licence for critical minerals projects.

Not a single oil tanker passed through the Strait of Hormuz on March 3, maritime monitors said, as the key oil and LNG chokepoint remained effectively closed amid escalating conflict between the US, Israel and Iran.In 2024, the Strait of Hormuz normally saw about 20 million barrels per day, the equivalent of about 20% of global petroleum liquids consumption. The historical daily average for all vessels through the strait is about 138 ships, according to the Joint Maritime Information Centre (JMIC).At least four vessels in or near the strait have been struck since the conflict began with continued threats reportedly coming from Iran adding to the fear and uncertainty effectively keeping the strait shuttered for the foreseeable future.Asia is likely to see the biggest hit from supply disruptions at Hormuz, with Australia following as a result of its reliance.According to the EIA, 84% of the crude oil and condensate and 83% of the liquefied natural gas that moved through the Strait of Hormuz went to Asian markets in 2024.Although a significant bulk commodity exporter to Asia, Australia is a price-taker when it comes to refined oil products.Australia only has two refineries remaining which only supply around 20% of Australia’s liquid fuel demand, leaving the country heavily exposed to import availability from Asia.Federal Climate Change and Energy Minister Chris Bowen has moved to reassure the public not to panic, saying the country is “currently in excess of the minimum stock obligations” for petrol, diesel and jet fuel.But those minimum stock obligations, instituted in 2023, are measured in days.Minister Bowen says Australia has 36 days’ worth of petrol, 34 days’ worth of diesel and 32 days’ worth of jet fuel on hand at present.“That's in addition to the petrol and diesel that's in service stations sitting in tanks around the country as we speak and, of course, the petrol that's already in cars,” he said.“That is just the reserve that is kept for these circumstances.”The International Energy Agency (IEA) requires member countries to hold emergency oil stocks equivalent to at least 90 days of net imports.Although Australia is well-below this threshold, the government argues its domestic Minimum Stockholding Obligation is designed around domestic fuel security rather than securing stock to sell or release to the global market in case of supply disruptions.Minister Bowen says Australia’s major refining companies have informed the government that they have confidence in the oil supplies through to May with contracts in place which they expect to be honoured and delivered.Although there is clarity around how long Australia’s access to oil is secured for, the very real issue of price remains.“Look, there will be pressures,” Minister Bowen said.“The biggest impact on petrol prices in Australia will always be oil prices, and oil price will come under pressure. But for those Australians who are concerned about our supply of oil and petrol, I'm pleased to say that we are in good shape.”Beyond the consumer’s shock at the pump — or even before, with queues potentially extending for kilometres — the mining industry’s financials could also take a hit.The mining industry is largely exposed to diesel prices for haulage and mobile equipment, which continues to be one of the hardest-to-abate inputs across the sector.According to the Institute for Energy Economics and Financial Analysis (IEEFA) one ultra class haul truck can use about 1 million litres of diesel in a year.Nationally, fuel combustion emissions in mining have doubled since FY11 to 21.8mt in FY23, growing at a steady rate of 6.8% per year, according to the IEEFA.If the prices of such a significant input rise due to shortages or uncertainty, operating costs at mining operations across the country could take a hit.Industry and government are well aware of the risks of this exposure. The Fuel Tax Credit (FTC) Scheme rebates the full federal fuel tax (51.6 cents/litre as of August 2025) on imported diesel used off-road in industry.According to Climate Energy Finance (CEF), mining accounts for the majority of the credits with $57.5b to August 2025, projected to exceed $84b by 2030.Based on CEF analysis, the top 15 consumers of diesel in Australia consumed almost 6 billion litres of diesel with the weighted-average fuel excise rate of 49 cents per litre providing over $2.9bn in forgone taxation over FY24.The largest beneficiaries included BHP (ASX: BHP) ($627m rebate), Rio Tinto (ASX: RIO) ($416m rebate) and Glencore ($364m rebate).Looking back at the haul truck example, the IEEFA calculates that the value of the diesel rebate over the truck’s 15-year lifespan is equal to the total purchase of the truck, meaning that the rebate effectively could pay for a truck’s worth of diesel over its life and, at scale, materially offset fleet operating costs across a mine.The strategic dilemma already facing the mining industry becomes even more prickly with the added geopolitical uncertainty.The largely touted, long-term solution is to reduce diesel dependence through electrification or alternative fuels. But in the short term, tax credits remain a more readily available pressure release for miners.Although the FTC has proven successful in softening fuel costs for industry, we have yet to see if it can prevent larger forces such as a war-linked price spike from hitting the industry’s costs.Beyond diesel, Federal Resources Minister Madeleine King has warned of impacts to Australia’s supply of urea, a type of nitrogen fertiliser.Minister King says Australia is quite dependent on imports from around the world of urea, with much of that coming through the Strait of Hormuz. “Using liquid natural gas from offshore WA, it goes into the production of urea at the Perdaman project,” she said.“This is a $6b project in north WA. It is one of the largest manufacturing projects this country has ever undertaken.“The investment that our government has put into it is also of historic proportions. And that is to make sure we have that resilience for the production of urea which goes into fertiliser.”The project is supported by the Northern Australia Infrastructure Fund, with Minister King saying the package totals more than $300m, including $220m directed to Perdaman.Minister King says it is expected that about half of the urea produced by the project would remain in Australia, with the rest set for export.

The Queensland Government has opened expressions of interest (EOI) for its Mount Isa transformation study to assess future pathways for Queensland’s north-west region.The study will examine long-term industrial capability, market conditions and broader opportunities for workers, communities and regional economies across the full copper value chain throughout the north-west minerals province (NWMP) and the associated smelter and refinery.Completion of the study is a key milestone under the joint government support package for the Mount Isa copper smelter and Townsville copper refinery which provides capital investment into Glencore’s copper processing facilities.Importantly, local working families, businesses, councils and community members will have opportunities to provide input during the process.Federal Industry, Innovation and Science Minister Tim Ayres says the study is about securing a strong, long-term future for the Mount Isa region by taking a clear, end-to-end look at the region’s copper value chain and industrial capability.“My simple message to Mount Isa is — we’ve got your back,” he said.“By assessing the full copper value chain across the region, from the smelter and refinery through to supply chains and emerging opportunities, this work will help inform sound government and industry decisions beyond the current support period.“The Government will always stand up for Australian workers and manufacturing, and will ensure Mount Isa workers, businesses, councils and community members have a genuine say.”The region’s copper industry outlook has been uncertain after Glencore closed the doors at its Mount Isa mines last year.However, the region is ushering in a new generation of developments — including the $2.4b Eva copper project located 95km northeast of Mount Isa — and the Queensland and Federal Governments, alongside Glencore, continue to and the state’s north-west.Queensland Natural Resources and Mines Minister Dale Last says this study is about standing with North and North-West Queensland for the long haul, delivering certainty to the hard-working Queenslanders who keep the copper industry moving.“We’re securing a future for thousands of jobs that rely on the smelter, refinery and Phosphate Hill,” he said.“We’re charting a long-term path that protects jobs and keeps Queensland at the forefront of copper and critical minerals processing."At the heart of this work are the boiler makers, diesel fitters, technicians and small businesses who rely on a strong copper processing sector.“This is an injection of confidence in the region, part of delivering a better lifestyle through a stronger economy, from the copper smelter in Mount Isa, the fertiliser plant at Phosphate Hill, to the emerging projects across the NWMP and the port workers in Townsville."

Australia vies for global critical minerals investment Federal Resources Minister Madeleine King has launched the new Australian Critical Minerals Prospectus as she gears up to hold talks with the US in Washington this week.The prospectus highlights 49 mines and 29 midstream critical minerals processing projects ready for investment across Australia to draw international interest — creating jobs and new supply chains of critical minerals with partner nations.Minister King will represent Australia at the US-led critical minerals dialogue of ministers — hosted by US Secretary of State Marco Rubio — and will take part in an industry forum as part of efforts to secure critical minerals supply chains.The meetings support implementation of the Australia-US critical minerals and rare earths framework signed by Prime Minister Anthony Albanese and US President Donald Trump in Washington last year.Minister King says the meetings will be a chance to discuss Australia’s $1.2b critical minerals strategic reserve and the Federal Government’s wider support for the critical minerals and rare earths sector.“Australia has a responsibility to lead on the supply of critical minerals and rare earths globally,” she said.“Australia has the deposits and the know-how to develop critical minerals projects reliably, sustainably and at scale.”Critical minerals and rare earths projects are located in every corner of Australia and are vital for the production of clean energy, as well as for the defence industry.Last month, the Federal Government announced the critical minerals strategic reserve would initially focus on gallium, antimony and rare earths elements, which are crucial for clean-energy and high-technology manufacturing as well as advanced military equipment.Federal Trade and Tourism Minister Don Farrel says the new prospectus showcases midstream processing opportunities to international investors, attracting the investment needed to build a future made in Australia and create more high paying, secure jobs for Australians“Australia’s abundant deposits of critical minerals, alongside the expertise to extract and process those minerals, presents an invaluable economic opportunity that the Government stands ready to seize,” he said.Earlier this week, the US also unveiled a $17.2b strategic critical minerals stockpile, dubbed “Project Vault”, with aims of reducing industry reliance on China and protect manufacturers from supply disruptions.Given its dominant role in global manufacturing and processing, China is positioned to influence global industries regardless of where the raw minerals or metals were originally mined.Against a backdrop of shifting domestic policy and rising geopolitical tensions, the US-led critical minerals dialogue of ministers — which is expected to commence today — could foster international framework partnerships that have the potential to reshape both regional and global economies.