Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Resources, Water and Northern Australia, Senator Birmingham. Can the minister outline how the recent agreement between the United States Department of Defense and the Australian company Lynas to supply critical minerals from its Mount Weld mine in Western Australia will benefit Australia?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

I thank Senator Canavan for his question. He is, of course, a consistent advocate for Australia's resources industry, as the entire chamber knows. Lynas is an Australian-listed company and a great Aussie success and export success story. It is a key component of the global rare-earth supply chain and, I understand, supplies around 13 per cent of global rare-earth element production. Lynas owns and operates a rare-earth mine in Mount Weld, WA, and ore from Mount Weld is shipped and processed at Lynas Advanced Materials Plant in Malaysia.

On 27 July 2020, Lynas announced that the US Department of Defense and Lynas had signed a contract for phase 1 work to deliver a US based heavy rare-earth processing facility. But this, I'm pleased to say, is not Lynas's only facility development. Lynas is also investing around $500 million to build a processing plant in Kalgoorlie that will use Mount Weld ore. Lynas is committed to using a residential workforce instead of FIFO workers, creating about 500 jobs in the construction phase and about 100 permanent roles. Lynas has a proven record in the processing of rare-earth elements, and this is an important milestone in delivering more diversified global supply of heavy rare earths.

Critical minerals featured again in the recent AUSMIN held by my colleagues in Washington. This highlighted the importance of work Australia and the US are progressing to diversify critical-mineral supply chains. The current COVID-19 pandemic has highlighted potential issues associated with concentrated supply chains, but we know that Australia is well placed to lead the diversification of critical-mineral supply chains across the globe, as we're the leading producer of some of the most sought after critical minerals, including rare earths, lithium, zirconium and titanium. These are critical minerals found in our phones, laptops and advanced technological products, and, of course, across defence industries as well. That's why we're so committed to working with our partners to help diversify that supply. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Canavan, a supplementary question?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Why is it important for our mining and manufacturing sectors to deliver to diverse export markets?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

Australia's resource industry is world leading. The world needs our raw materials and mining, and we have been a proud, consistent and reliable supplier of such minerals right across the world, in terms of support for the growth of others. Australia is the world's largest producer of iron ore, metallurgical coal, LNG and bauxite and the second-largest producer of gold and thermal coal. Australia also has extensive resources of nickel, copper and zinc, metals that will be key for the future economy. We're increasingly looking to and working with companies like Lynas in the value-adding of our resources. Our mining equipment, technology and services industry is world leading, itself exporting around $27 billion worth of Australian know-how and expertise to support resources projects across the globe.

Australia has many robust trading partners. We export our resources to many of the world's major economies, meeting their demands and their needs, but, in doing so, creating jobs, and opportunities for Australians and for Australian businesses to grow. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Canavan, a final supplementary question?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, how will expanding our minerals exports to nations like the United States help secure long-term, well-paying jobs in regional Australia on our road to economic recovery?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

The resources industry is one of the most important industries for regional communities right across Australian states, including Senator Canavan's great home state of Queensland. Whether it's Karratha, Mackay, Mount Isa, across Queensland or right across the country, the resources sector underpins good jobs, reliable jobs, high-paying jobs for families, particularly those living in regional areas, and it creates economies and communities that provide further job opportunities right across regional Australia.

It is of course also, I am pleased to say as trade minister, a leading export sector in terms of the contribution it makes generating income wealth for our nation. As I was saying before, it is not just the extraction of resources but increasingly areas of processing and the use of Australian skills, know-how and capabilities that we see now assisting projects around the world and again generating more high-paying job opportunities for Australians, which will be ever more important in our economic recovery. (Time expired)