Next week, Canadian Prime Minister Mark Carney will address the Australian Parliament, highlighting a deepening partnership between the two nations. This comes amid growing efforts to bypass China's dominance in critical minerals, as outlined in a new report by the Australian Strategic Policy Institute (ASPI).
Last October, Canberra signed a bilateral agreement with Ottawa to collaborate on critical minerals, which experts say could serve as a model for future alliances. The ASPI report, titled 'Disruption and Opportunity: Australia and Critical Minerals in a Changing Global Order', urges Australia to shift focus from the United States to other partners like Canada, Japan, South Korea, and Malaysia.
Author Ian Satchwell argues that Australia's reliance on the US for critical minerals partnerships is risky due to policy uncertainties. He notes that while Australia has signed over 67 agreements with various nations, many remain inactive. 'Australia must pivot from signing partnerships to fully activating them,' Satchwell writes.
The report emphasizes that Canada is Australia's closest minerals peer in scale, capability, and commitment to sustainable mining. Both countries host the world's biggest miners and dominate exploration, production, and capital markets for extractive industries.
Despite the push for diversification, Satchwell acknowledges that China will remain an 'indispensable market' for Australian minerals. However, he warns that China's control over refining and pricing of critical minerals like copper, nickel, lithium, and rare earths poses an 'existential threat' to global supply chains.
