'Liberation Day' now a multi-billion-dollar liability

Several explorers, backed by the Queensland Government, are leveraging the current global fuel security crisis to push for development of the Taroom Trough, which the state says could become Australia's first new oil field since the 1970s. Though the Federal Government is making efforts to minimise the economic shock of a fuel crisis, it does not change the fact that Australia’s dependence on energy imports leaves the country vulnerable.   Australia imports more than 90% of its liquid fuels, according to the International Energy Agency (IEA). Since 2000, Australia’s importation of oil product has increased about tenfold, according to 2024 data from the International Energy Agency (IEA). The Taroom Trough is a major hydrocarbon-bearing structure of the Bowen Basin, in southern and central Queensland, and the Queensland Government says developing it would bolster Australia’s long-term fuel security. With the first barrels of oil now entering the domestic fuel supply chain, the Queensland Government is pushing for major project status by the Federal Government to fast-track environmental approvals under the National Interest Fast-Track Assessment Pathway.  Queensland Premier David Crisafulli says streamlining exploration and production of the Taroom Trough is needed to get it out of the ground sooner. “Never again should we be left without the ability to generate domestic fuel supply,” he said. The amount of oil that could be produced — and the environmental impacts of the large-scale, unconventional development — remains unclear. The operation is currently only producing 200 barrels of crude oil a day, barely making a dent in Australia’s demand, with a daily consumption of more than one million barrels of oil a day, according to the Institute for Energy Economics and Financial Analysis (IEEFA).  Even at its peak, an average of about 800,000 barrels a day in 2000 as estimated by BP, domestic production still fell short of demand.  Australia’s oil reserves are also limited. Geoscience Australia estimates Australia’s proven commercial reserves are about 229 million barrels of oil. Given the amount of fuel the country consumes each day, this would only be enough for about seven months, according to the IEEFA. Australia’s unconventional oil reserves have the potential to be much higher than commercial reserves, but accessing these sources comes with a plethora of issues — mainly surrounding the use of fracking. Prime Minister Anthony Albanese is making a more immediate effort to shore up Australia’s fuel supply in talks with Singapore, a crucial fuel refinery hub. Singapore has three refineries that have a combined crude oil refining capacity of 1.3m barrels a day, according to the EIA. Australia has a solid bilateral relationship with Singapore — the region is one of Australia’s largest refined fuel suppliers and Australia is one of Singapore’s largest LNG suppliers.  “Australia and Singapore share deep concern over the situation in the Middle East and its consequences for our region, such as the impact on energy supply chains and prices,” Prime Minister Albanese said. “ commitment to strengthen energy security, to support the flow of essential goods including petroleum oils, such as diesel and LNG between our two countries, and to notify and consult each other on any disruptions with ramifications on the trade of energy.” Prime Minister Albanese may be able to secure more immediate fuel supplies from Singapore, but that doesn’t change the fact Singapore relies heavily on crude oil imports from the Middle East to maintain its production capacity. Energy markets have remained on edge since the disruption introduced by the Covid-19 Pandemic and quickly followed by the global energy crisis sparked by Russia’s invasion of Ukraine in 2022.  Now, the ongoing conflict in Iran is rubbing salt in the still healing wound of Australia’s energy market.  On the upside, the US has agreed to a temporary ceasefire with Iran on the condition that ships be granted safe passage through the Strait of Hormuz, which has given some tentative relief to the market, although shipping in the waterway remains heavily restricted. Even if the ceasefire holds, restoring shipping flows, repairing damaged infrastructure and returning production to full capacity could still take months. 

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.

Newmont hit with class action over ‘toxic trifecta’ claims at Cadia Landowners in NSW have filed an environmental class action against Cadia Holdings, a subsidiary of Newmont, alleging they have been exposed to pollution from the Cadia mine.Filed by William Roberts Lawyers, the claim alleges pollutants detected on private properties include arsenic, heavy metals and the “forever chemical” PFAS.The lawyers say residents have reported visible contamination in waterways around the mine since around 2024, including the Belubula River, with laboratory testing allegedly showing heavy metals, PFAS and hydrocarbons accumulating in “highly toxic foam”.The claim alleges the chemicals are linked to Cadia’s ore processing and tailings deposited in an open cut pit after the 2018 tailings dam wall collapse.The plaintiffs are seeking compensation, including damages for alleged reductions in property values, and an injunction to restrain further pollution.This isn’t the first time environmental concerns at Cadia have been raised.Community members have previously reported clouds of white dust blowing from tailings facilities, while mining dust from crushing operations at the Cadia East underground mine has also been raised as a concern.Cadia Holdings was ordered to pay more than $400,000 after being prosecuted by the NSW Environment Protection Authority (EPA) for three dust emission offences that occurred between November 2021 and May 2023.William Roberts principal lawyer Oliver Gayner, who previously worked on the $212.5m Federal Court settlement of PFAS-contaminated communities including Williamtown, is acting for the plaintiffs.“For several years the Cadia residents have repeatedly raised their concerns about the detrimental environmental impact caused by this mine,” Mr Gayner said.“They have provided scientific evidence to Newmont and the EPA, but their concerns have not been addressed.“That is why the community are now taking this class action as a last resort. They do not want to close the mine – instead they seek what they were promised, which is a safe and sustainable mine which acts as a good neighbour.”Newmont Cadia confirmed that it had been served with proceedings in the Supreme Court of NSW.“Cadia will respond through the appropriate legal processes. As the matter is before Court, it is not appropriate to comment further at this time,” Newmont said in a statement.“Newmont takes its legal and regulatory obligations seriously and is committed to environmental stewardship.”While Cadia is currently approved to continue operations until 2031, Newmont is seeking approval from the NSW and Federal governments to extend its mining operations for about 25 years.Extending mining beyond 2031 will provide ongoing employment for more than 1500 people, 80% who live locally in Orange, Blayney and Cabonne, according to Newmont.