Senate Economics Legislation Committee [Part 2], , 3:39:19 to 3:44:08
Discussion on government funding for new critical minerals projects and the difficulties of competing against global monopolies.
Topics: Manufacturing, Government spending
Speakers: Geoff Mason, Senator Susan McDonald, Speaker 20, Unknown Speaker
come into production since 2025?
>> Good evening, Senator. How are you?
>> Mr.
>> Um so we've had quite a few projects come online well at least funded um over the last little while um most recently we've broken ground on Alcoa um which was a major gallium announcement which has come through. Um and then as you raised earlier Arafura um has now broken ground as well as far as production goes. Uh just in the last 24 hours we've just announced funding for global advanced metals um which is an investment which is being brought together by XIM as well as Export Finance Australia. Um and then there's also a funding batch which has been provided to Astron for their Donald Rare earth project uh down in Victoria uh which is being funded by the NRFC and by EFA. Um there's quite a long list um of additional projects which have been funded in the last little while as well in terms of commitments made by the government.
>> Are any of these projects able to stand on their own two feet?
>> It's a really challenging market for the critical mineral sector. Um so it's the reason why government comes in to provide some support particularly at the early stages.
>> Why is it so challenging for Australia to develop critical minerals projects?
>> It's not just Australia. It's a challenge for companies glo critical minerals projects around the world. These are junior to mid-tier explorers. Um, often they're trying to enter a market where there's not a market per se for them to be able to enter into. Um, it's a very competitive market globally. Um, there's some major monopoly players including China who has significant power when it comes to being able to purchase as well as deliver product at a highly competitive rate.
I can certainly echo those sentiments having been at yesterday and engaged with some of the international delegations that were there and very similar stories in terms of what you're hearing around the world.
so so every country is doing some form of grant incentive. Um
>> there is yes m yes senator there is a lot of investment coming from government around the world. Um one of the key ways which companies are developing funding to be able to support critical minerals projects around the world at the moment is by working with export credit agencies like Australia's export finance like Australia's export finance agency.
Are all of those mines that you named, Alcoa, Arafura, Global Minerals, Ashton, they all uh Australianowned companies?
>> Uh I'd need to go and look at the specifics about them. Um some of them will definitely be Australianowned. Others will be uh have investors from around the world most likely.
>> What about if they were Chineseowned companies? Would we still be giving them grants given that they are the reason why we're providing funding to these companies?
>> I think we'd need to look at it on a case by case basis.
>> Well, on notice, you'll come back with who what's the ownership structure.
>> We can each of those >> we'll we'll try and provide you with the most information we can, Senator.
I'm I'm you know just conscious that Australia is competing with other jurisdictions in the world. Uh certainly South America, Africa, you know, Southeast Asia, number of Canada,
>> yeah,
>> number of countries that we're competing with. Um does that mean that uh you know we've got a limited bucket of money at the end of the day? Should we be doing more on speed of approvals? Uh, you know, what else can we do to ensure that Australia remains competitive in this global market?
>> Uh, Senator, I think that we've got a critical mineral strategy which broadly sets out what our approach is. Um uh we do have uh I don't think I'm the right person to answer questions specifically on the regulatory environment but in terms of providing support for the sector um we've got a critical minerals facility which we've set up here um which has been of direct benefit to a number of companies um and then uh my colleague who runs the critical mineral strategic reserve could provide you with some additional information about that tool which is a worldleading tool um which I think particularly drawing on the last few days at IMAK. A lot of other countries around the world have expressed a strong interest in understanding how we can use that to be able to cooperate with them.