On Tuesday 28 May, the European Union and Australia signed a Memorandum of Understanding for a partnership on sustainable critical and strategic minerals. Canberra has significant mineral resources: the country is the world’s leading producer of lithium, bauxite and iron ore. It also produces manganese and uranium. The Memorandum of Understanding is to be followed by a Roadmap, to be developed within the next six months.
The EU’s primary objective is to secure its supply of critical minerals. The agreement sets out areas of cooperation covering the exploration, extraction, processing and recycling of these materials. In detail, this means the joint facilitation of projects, aligning mineral pricing with respect for environmental and governance criteria (ESG) and European investment in Australia.
The two partners are seeking international recognition for the added value of supply chains that meet the highest standards. The aim is to combat price dumping for certain minerals.
For Canberra, diversifying the sources of foreign investment is also a goal. “Investment from our international partners is vital to achieving Australia’s full potential as a Renewable Energy Superpower – and helps create more secure well-paid jobs for Australians”, said Australian Minister for Trade and Tourism Don Farrell.
“I trust the signature of this partnership will send a strong message across the entire raw materials ecosystem in the EU and in Australia. It will boost cooperation, investments, and businesses opportunities”, commented Commissioner for Internal Market, Thierry Breton.
The Roadmap to be developed shortly will set out specific actions to be implemented between the two parties. Like the Memorandum of Understanding, it will not be legally binding. The EU and Australia intend to establish an officials’ level Critical and Strategic Minerals Dialogue in the context of their Framework Agreement.
According to a source close to the matter, this partnership, although non-binding, offers a relevant platform for discussion between two major players on a strategic subject.
See the Memorandum of Understanding: https://aeur.eu/f/ce6 (Original version in French by Léa Marchal)