Australia wants to compete with China in producing
and refining resources vital to the next phase of high-tech manufacturing
around the world, according to Minister Madeleine King, backing the country’s
bid to build its critical minerals capability.
When asked about the possibility of greater Chinese
investment in the sector, Resources Minister King said while Australia was
receptive to proposals, the government sought to build up the domestic
industry.
“The reason we
want to make sure that we hold more critical minerals capabilities here, in
refining, in processing, and further down the line, is to compete with China,”
King said in a phone interview on Tuesday. “That’s not a bad thing.”
Since coming to power in May 2022, Australia’s
center-left Labor government has ramped up investment in minerals including
lithium, cobalt and titanium, which are vital for global green energy
infrastructure and the defense manufacturing.
King’s remarks come days after Australia expanded its
list of resources deemed crucial to its energy transition and national security
needs. Australia has some of the world’s largest reserves of the critical
resources, sparking interest from nations keen to diversify their supply chains
given China’s substantial head start in processing.
In recent months, Australia has boosted cooperation
with countries including the US on critical minerals. However as relations
between Beijing and Canberra warmed, China has pushed for greater access for
its investors, including in the mining sector.
Ambassador Xiao Qian said in October he wanted to see
a more hospitable environment for Chinese investors while top diplomat Liu
Jianchao warned during a November visit that his country’s firms didn’t see “a
clear future” for investment.
About half of the government’s A$4 billion ($2.6
billion) financing facility to build up the critical minerals capacity has
already been spent, and there may be a need for further state funding, King
said.
The department was looking into strategic critical
minerals hubs across Australia to concentrate mining and refining in specific
areas, where they could share infrastructure assets, she said.
The minister said the expense of individual companies
constructing roads and rail infrastructure to service their operations could
dramatically push up the cost of projects.
Source: Mining