Prime Minister Anthony Albanese’s shock decision to create a critical minerals reserve has blindsided his “friend” Roger Cook and left the industry scrambling for details.
Despite WA being Australia’s resources powerhouse and home to many of its critical minerals deposits, the State’s Premier said he was not aware of the new Federal policy.
The Albanese Government has also failed to consult the industry about its plan, leaving the sector scrambling to find out more than scant details, multiple sources said.
Mr Cook said on Thursday that he was not briefed before the Prime Minister’s announcement for a strategic reserve, which would form part of Mr Albanese’s response to Donald Trump’s tariffs.
He said that given WA was a key player in the critical minerals space, he would work with the Commonwealth on the policy.
“That’s obviously a very important part of making sure that we have the resources on hand when we need them in a time of global uncertainty and when supply chains may be challenged,” Mr Cook said.
It has been speculated the reserve would involve the Government buying critical minerals from producers and either finding the best markets for them overseas or storing them to use domestically or for our allies.
But the industry has raised concerns a reserve would impose export controls or a domestic reservation, which would be a significant risk for investors and miners.
The Minerals Council of Australia warned stockpiling critical minerals in Australia before there was any processing capacity in the country “serves no benefit” and warned against veering towards export controls.
“Adding this domestic political risk to the numerous hurdles that miners already face in getting projects off the ground or maintaining the viability of their operations will only decrease Australia’s competitiveness and undermine the very investment we need to meet the world’s demand for our critical minerals,” chief executive Tania Constable said.
Association of Mining and Exploration Companies chief executive Warren Pearce said he was concerned there was no detail around the proposal but added it was clear the US saw critical minerals as a key component for its future economy.
“We’ve got a really powerful card to play in these negotiations, or indeed, how these supply chains develop,” he said.
“We’ve got to be really smart, really strategic.”
One industry source suggested the model used could be similar to the CBH model for grain where farmers were paid upfront for their product, which was either sold immediately or stockpiled to get the best prices.
Opposition Leader Peter Dutton has claimed Mr Ablanese never put critical minerals on the table during discussions with the US administration over tariffs.
But Mr Albanese spoke about Australia’s critical minerals during his phone call with Mr Trump in early February and Australia did offer the US access during negotiations.
Foreign Minister Penny Wong and ambassador Kevin Rudd have both previously said critical minerals were central to talks.
Multiple prime ministers have raised critical minerals and the opportunities Australia can offer in talks with US presidents, including Scott Morrison when he met Donald Trump in the White House in 2019 and Mr Albanese during talks with Joe Biden in 2023.
Mr Cook said Mr Dutton’s “politically charged commentary” wasn’t helpful.
“We need to actually be sophisticated players in a complex market,” he said.
Mr Trump has repeatedly noted the importance of critical minerals, including by insisting Ukrainian leader Volodymyr Zelensky sign a critical minerals pact before receiving any security guarantees from the US.
The White House has also exempted critical minerals, including manganese, cobalt, chromium and tungsten align with other ores crucial to the energy transition such as zinc and copper, from the “Liberation Day” tariffs.
