Almost 60 years after Donald Horne coined the time period, Australia continues to be a fortunate nation reliant on a hoard of uncommon minerals from which it derives its wealth.
But one among Australia’s largest unions is asking for a “carrot and stick” strategy to knock the nation out of financial complacency.
The Australian Workers’ Union will transfer a decision on the ALP nationwide convention in August that might commit Labor to introduce a tax on unprocessed exports of important minerals.
To complement it, the AWU will advocate establishing a manufacturing subsidy scheme to foster home refining, processing and part manufacturing.
National secretary Daniel Walton, who on Tuesday introduced he’ll step down from the position after seven years in cost, warns Australia dangers losing an financial bonanza by persevering with to ship uncooked supplies to China as an alternative of increase an industrial capability of its personal.
“Australia has been blessed with the world’s most enviable supply of critical minerals, but simply digging these precious material up and loading them on ships is an incredibly limited way to view the opportunity,” he mentioned.
Critical minerals equivalent to lithium, cobalt and uncommon earths are labelled as such due to the important position they play within the world transition to renewable power.
But whereas Australia produces greater than half the world’s mined lithium output, the nation lacks the manufacturing capability to show the uncooked materials into higher-value merchandise.
As a consequence, financial output and jobs increased up the worth chain are being ceded to opponents who can capitalise on our misplaced productiveness, equivalent to China.
This additionally poses strategic dangers at a time of heightened geopolitical tensions.
“Do we really want to assume that we can keep digging up critical minerals, shipping them to China for processing, and China will just keep shipping them back to us to manufacture batteries?” Mr Walton mentioned.
“It’s not a bet I’d feel confident about.”
The US is making an attempt to rise to the problem of worldwide competitors for important elements by pumping trillions of {dollars} into its economic system to revive its manufacturing capability.
While Australia lacks the identical monetary heft to throw round, Mr Walton argues the nation mustn’t squander the leverage uncooked mineral deposits present.
“We know demand from the world for our critical minerals is astronomical,” he mentioned.
“We have the power to create the rules under which they can have them.
“Treasury does not have entry to sufficient carrots to encourage the change we want right here. We have to get out the stick.”
A spokeswoman for Resources Minister Madeleine King said the government was developing a critical minerals strategy to be released later this year.
“The technique will define the federal government’s priorities for the event of the important minerals sector, together with how Australia can create financial alternatives throughout the nation, seize the alternatives of the web zero transformation and set up sturdy, sustainable and various provide chains,” she mentioned.
“The authorities is grateful to stakeholders who participated in consultations on the important minerals technique, together with the AWU.”
Source: www.perthnow.com.au
