Do Australia's critical metals and minerals make it safer?

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Australia is a major producer of many critical minerals and metals, including rare earth elements, lithium, cobalt, and nickel. Having a domestic supply of these resources can be beneficial for a country, as it can reduce the need to import these materials and help ensure a stable supply for domestic industries. However, it is also important to note that many other countries also produce critical minerals and metals, and no single country has a monopoly on all of these resources.

As far as the question of whether this makes Australia safer or a target, it is difficult to say for certain. Having a domestic supply of critical minerals and metals could potentially reduce the country's reliance on imports and make it less vulnerable to supply disruptions. On the other hand, being a major producer of these resources could also potentially make Australia a target for countries or individuals seeking to secure access to these materials.

It is important for any country to consider both the potential benefits and risks of being a major producer of critical minerals and metals, and to take appropriate measures to protect its resources and ensure the security of its supply chains. This importance was recognised by China's ex-premier Deng Xiaoping as far back as 1997 when he demonstrated great foresight when he commented: "China would be for rare earth metals what the Middle East was to oil". Since then China has established in practical terms a supply monopoly where it produces over 95% of the global supply. China's dominance is now being actively addressed with Australian and to a lesser extent Canadian and USA companies at the forefront.

Australia is indeed a major producer of many critical minerals and metals, including rare earth elements, lithium, cobalt, and nickel; what other countries have such a broad range of critical metals?

There are several countries that produce a wide range of critical minerals and metals, including:

China: China is the world's leading producer of many critical minerals and metals, including rare earth elements, tungsten, antimony, and bismuth.

United States: The United States is a significant producer of a number of critical minerals and metals, including copper, lithium, and rare earth elements.

Russia: Russia is a major producer of a variety of critical minerals and metals, including palladium, platinum, and cobalt.

Brazil: Brazil is a significant producer of a number of critical minerals and metals, including niobium, tantalum, and lithium.

Canada: Canada is a major producer of several critical minerals and metals, including nickel, cobalt, and platinum group metals.

There are also many other countries that produce smaller quantities of critical minerals and metals, including a number of countries in Africa, Europe, and Asia. It is important to note that the production of critical minerals and metals is a global industry, and no single country has a monopoly on all of these resources.

Per capita which country has the most critical metals
It is difficult to determine which country has the most critical minerals and metals per capita, as this can vary significantly depending on the specific minerals and metals in question and the size of a country's population.

In general, countries with large populations will tend to have lower per capita reserves of critical minerals and metals, since these reserves must be shared among a larger number of people. Conversely, countries with smaller populations may have higher per capita reserves of critical minerals and metals. It also likely the case that small population countries with vast resources have not as yet converted these massive resources into reserves.

Overall, it is important to consider both the total reserves and resources of critical minerals and metals in a country and the size of its population when evaluating its' per capita resources.

Where does Australia sit regarding the per capita and critical metals
It is difficult to determine exactly where Australia ranks in terms of per capita reserves of critical minerals and metals, as this can vary significantly depending on the specific minerals and metals in question and the size of the country's population.

However, it is worth noting that Australia is a major producer of a number of critical minerals and metals, including rare earth elements, lithium, cobalt, tantalum and nickel. The country has significant deposits of these and other minerals, and is home to a number of mining operations that extract and process these resources. In terms of "resources" as opposed to the USGS beloved "reserves" Australia is likely to be one of world leaders and if analysed in terms of resources per capita it is then likely to be one of the world's most richly endowed.

Overall, Australia is considered to be a major player in the global critical minerals and metals market, and its resources are an important contributor to the country's economy. However, it is important to note that the availability of critical minerals and metals can vary significantly depending on a variety of factors, and no single country has a monopoly on all of these resources.

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Summary of AFR Article: 21/06/2023

Taiwan's foreign minister Joseph Wu said that if Australia could become a global player in critical minerals, it would be a "blessing" for the world.

Wu said that Australia would need to be prepared to play the long game, as it took Taiwan 40 years to develop its semiconductor industry.

The Australian government's critical minerals strategy was released on Tuesday, but the resources sector criticized it for being "heavy on rhetoric and light on detail."

The strategy did not provide an updated critical minerals list, and it did not offer tax incentives or fast-tracked approvals for critical minerals projects.

Minerals Council of Australia chief executive Tania Constable said that Australia should "take the next step" to ensure there was adequate infrastructure, investment and staff to deliver on promises.

She said that nickel, copper, tin, alumina and bauxite should be added to the 26 critical minerals on Australia's priority list.

Mr Wu said that Australia would also have to develop a production "ecosystem" similar to Taiwan's Hsinchu Science Park, where both the upstream and downstream elements of manufacturing could be managed together.

Ms Kao said that the most important thing Taiwan had done was to "create a good investment environment where companies can focus on developing their own technologies."

In conclusion, Taiwan's foreign minister Joseph Wu has said that if Australia could become a global player in critical minerals, it would be a "blessing" for the world. However, he warned that Australia would need to be prepared to play the long game, as it took Taiwan 40 years to develop its semiconductor industry.

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Summary of AFR article: https://www.afr.com/companies/mining...0230620-p5dhx7

Australia has a clear ambition to develop its critical minerals sector, but it is less clear how efficient the country will be in exploiting opportunities and fostering investment in new industries and technologies at scale.

The federal government has unveiled a critical minerals strategy, but it does not provide much in the way of new concrete measures.

The government has committed an additional $500 million in ring-fenced loans from the Northern Australian Infrastructure Facility, but this is relatively small compared to the hundreds of billions of dollars of subsidies and tax breaks for renewables investment unleashed by the Biden Administration’s Inflation Reduction Act.

Instead, the government is hoping to use Australia’s status as a close ally and the prospect of it being considered the equivalent of a domestic supplier to provide Australian companies access to US investment, technology co-operation, contracts and customers.

Progress is unlikely to be as smooth or fast as the government’s reassurances sound.
China, for example, has spent decades building up an indispensable role as a vertically integrated global supplier of rare earths, including the processing of metals and magnets vital for new technologies.

It means that quickly making Australia more self-reliant in terms of specialised processing of critical minerals – or the more remote dream of green manufacturing and battery production – is appealing for governments to promise. It’s much more difficult to achieve.

Some states, particularly Western Australia, are sensibly intent on creating industrial hubs and shared infrastructure to underpin processing and manufacturing capacity of individual companies.
However, Australia will always be a very high-cost country in terms of competitiveness. Compensating for that requires promoting its high environmental standards as an even more valuable advantage – along with Australia’s strong protection of intellectual property rights and its focus on national security.

The result is that Australia’s critical minerals prospects need considerably more hard substance as well as hopeful strategy papers.

In conclusion, the article discusses the challenges and opportunities facing Australia in developing its critical minerals sector. The government has unveiled a strategy, but it is unclear how effective this will be in achieving the country’s goals. There are a number of factors that will need to be considered, including the high cost of production in Australia, the need for infrastructure, and the competition from China.