Australian mining ‘under assault’ from China, US ambassador says

“The climate crisis is a global challenge which requires urgent international action … it is also a massive business opportunity,” she said.

“No two countries are better positioned to benefit than the US and Australia,” she said.

However, mining profits are sliding, with customers not yet required to pay a premium for higher standards, and investors are wary as China’s market stranglehold continues.

Australian nickel producers have already mothballed mines amid a glut of cheap Indonesian metal.

Mining giant BHP issued a “call to arms” to federal and state governments two months ago to make sure the entire Australian mining industry remained competitive.

Australia’s Lynas, the biggest producer of rare earths outside China, has also warned of market contagion.

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Kennedy said the Inflation Reduction Act had already stimulated more than $US5 billion ($7.8 billion) of American investment in Australia, and US automakers had more than $19 billion in offtake agreements.

Over the next 10 years, US laws are forecast to bring $US1.5 trillion ($2.3 trillion) for manufacturing, electric vehicles, clean energy and energy transmission.

Kennedy said the alliance could safeguard rules-based order and trade routes for Australian resources, as well as high environmental and labour standards for workers.

But the conference heard on day one on Tuesday that the full implications of US laws were unknown for Australia’s China-backed mines and processing plants – particularly for lithium.

“Until the formal rule-making process to determine foreign entities of concern are finalised, the full implications of the IRA are unknown,” WA Mines Minster David Michael said.

China is a long-standing investor in Australian commodities – and a top customer.

AAP

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