Australia, France to Jointly Study Critical Minerals Supply Chain

Australian Resource Minister Madeleine King speaks during Question Time at Parliament House in Canberra, Australia on Aug. 9, 2023. (AAP Image/Lukas Coch)

Australia and France signed an agreement to jointly study the critical minerals supply chains and identify each country’s needs for these resources in terms of clean energy technology, and medical and defence applications.

Minister for Resources and Northern Australia Madeleine King inked the Bilateral Dialogue on Critical Minerals agreement in Paris with French Minister for the Energy Transition Agnès Pannier-Runacher, according to the Australian Department of Industry, Science, and Resources.

“Australia has abundant reserves of critical minerals and our Critical Minerals Strategy sets out the pathway for Australia to diversify global supply chains and become a globally significant supplier by 2030,” Ms. King said.

“The joint study will also look at what the governments of France and Australia can do to overcome obstacles to secure stable supply chains for critical minerals.”

The study is due to be completed by the end of 2023.

Ms. King also held bilateral talks with ministerial counterparts from Germany, the EU, France, and the UK during her trip to Paris to attend the International Energy Agency’s (IEA) Critical Minerals and Clean Energy Summit and promote Australia as a reliable supplier of critical minerals amid the global pursuit for net zero.

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“Australia has the critical minerals the world needs to help lower emissions and we have well-established export supply chains built over decades through our iron ore and gas industries,” the minister said. “The world’s clean energy transition will ride on the back of Australia’s critical minerals.”

The department noted that Australia is the world’s top unprocessed lithium producer and third-largest cobalt exporter. It is also the world’s fourth-largest exporter of rare earths, mined copper, and nickel, and is a significant producer of aluminium.

Government Policy Must Facilitate Critical Minerals Production: BHP

However, governments must work on having stable fiscal settings and streamlining the planning and permitting processes for mining companies to scale up production of critical minerals, BHP CEO Mike Henry said in a speech to the Critical Minerals and Clean Energy Summit.

“Governments must provide predictability and stability to attract capital at the lowest possible cost and as quickly as possible,” Mr. Henry said. “This means stable fiscal settings, streamlined planning and permitting processes, and harmonised standards.”

Mr. Henry added that it is important to have strong anti-corruption frameworks and maintain transparency around paid taxes and approvals processes for the natural resources sector. Governments that provide certainty and stability will lead the world’s race for critical minerals, he said.

Moreover, Mr. Henry called for a “small set of common standards” that will help boost mining production and create jobs and generate taxes for the government with the least possible impact on the environment.

“More projects need to be identified, permitted, and given the green light by those who are to invest in them. Governments and communities need to be supportive of these projects progressing and capital providers need to be flowing the capital to those companies that uphold the high ESG standards that must be met,” Mr. Henry said.

But he noted that there were too many different standards for ESG (environmental, social, and corporate governance) frameworks, which leads to confusion and reduced efforts to uphold them.

Countries Seek Sustainable Critical Minerals Supply Chain

The IEA said that it has witnessed more priority on establishing a sustainable critical minerals supply chain on the back of record deployment of clean energy technologies.

Around 50 countries attended the summit to discuss experiences and courses of action on critical minerals to support a fast and secure transition to clean energy.

“The level of over-concentration that we see in critical minerals markets today is unlike that for any other major commodity we have come to rely on in the modern world. History has shown us that failing to properly diversify supplies and trade routes of essential resources comes with profound risks,” IEA Executive Director Fatih Birol said.

“Locking in secure and sustainable supplies of critical minerals for the clean energy transition has quickly become a top priority for governments, companies and investors around the world.”

The summit has identified six key actions to ensure a sustainable critical minerals supply chain, such as significantly increasing supplies of many minerals and metals and tapping the full potential of technology and recycling to alleviate potential strains on supply.

Other key actions identified are: promoting transparency in markets; enhancing the availability of reliable information; incentivising sustainable and responsible production of critical minerals; and boosting international collaboration among governments, market participants, civil society and international organisations.

The IEA is scheduled to hold a Ministerial Meeting in February 2024, providing an opportunity for countries to examine the role of critical minerals for the changing landscape of international cooperation on energy security and climate change.

“Fostering inclusive dialogue must be at the forefront of the critical minerals agenda as we navigate this complex and multifaceted issue within the clean energy transition,” Mr. Birol said. “Through its analysis and data, it is the IEA’s mission to ensure that critical minerals become a symbol of international cooperation rather than resource anxiety.”