Marmota inks $1M deal to divest South Australian copper project
Marmota Limited has inked a $1 million deal to sell its West Melton copper tenement in South Australia's copper-rich Yorke Peninsula to G4 Metals, securing a cornerstone equity position in the copper-focused IPO hopeful while maintaining the company's exposure to the emerging copper province.
The divestment of West Melton for $1M in G4 shares is contingent upon a G4 achieving a successful IPO capital raise before the end of next year. The deal includes potential performance payments to Marmota of up to $500,000 in shares tied to discovery milestones.
West Melton sits adjacent to the Hillside copper project, which was formerly owned and developed by Rex Minerals. MACH Metals - a subsidiary of Indonesia's largest conglomerate Salim Group - bought Rex last year for $393 million.
The all-cash takeover underscored the allure of the well-endowed Yorke Peninsula. The region has a widespread history of copper production and is expected to become South Australia's next copper production hub, as copper prices begin to soar. Hillside has a massive 1.9 million tonnes of copper and 1.5 million ounces of gold.
'This deal has been specially structured with G4 Metals... in such a way that Marmota's shareholders will continue to be exposed to the upside by taking a substantial stake in the new company.'
Marmota Limited chairman Dr Colin Rose
Marmota's all-scrip deal ensures shareholders retain a front-row seat to the region's copper potential while allowing the company to focus on its bevvy of South Australian opportunities, including the advanced Aurora Tank gold project and its recent Muckanippie titanium discovery.
Marmota Limited chairman Dr Colin Rose said: ' This deal has been specially structured with G4 Metals - a company being set up to advance copper projects in South Australia - in such a way that Marmota's shareholders will continue to be exposed to the upside by taking a substantial stake in the new company. We look forward to working with G4 to finalise the sale and to future success in developing these assets in a prime copper tenement, in an area with a proud history of copper mining. '
If G4's IPO does not materialise before 2027, Marmota can walk away from the deal. Further sweetening the pot, Marmota will pocket $250,000 in shares if a JORC resource exceeding 50,000 tonnes of copper is declared at West Melton or G4's Yorke Peninsula tenements, with an additional $250,000 in shares for a resource surpassing 100,000t.
Following Rex's takeover, MACH carried out a competitive global partnering search to fund Hillside's $843M development. Hillside's stage one reserves contain 505,000t of copper and 435,000 ounces of gold. MACH has expansion plans underway, driven by a gold price sitting some US$1000 (A$1540) per ounce higher than at the time of its acquisition.
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15 minutes ago
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'Deeply concerning': AUKUS deal under threat as Trump launches review
The United States has launched a snap review of the AUKUS submarine deal, throwing its $368 billion security pact with Australia into doubt just as Prime Minister Anthony Albanese prepares for a potential meeting with Donald Trump. After news broke overnight of the development, with the Pentagon reportedly saying the AUKUS deal must be weighed to establish whether it aligns with Mr Trump's "America First" approach, a spokesperson for Deputy Prime Minister Richard Marles said in a statement that it was "natural that the Administration would want to examine this major undertaking, including progress and delivery." "We are committed to AUKUS and we look forward to working closely with the US on the review," the spokesperson said. "The United States advised Australia and the UK of the review. All three countries are committed to ensuring AUKUS meets national and trilateral objectives. "Importantly, AUKUS will grow both US and Australian defence industry as well as generating thousands of new manufacturing jobs." The Coalition responded with concern, with opposition frontbencher Bridget McKenzie telling Nine's Today the AUKUS pact and Australia's strategic defence partnership with the US needed to be "the Prime Minister's primary concern." "[It is] a deeply concerning development," Senator McKenzie said. "We cannot defend ourselves without these relationships." The Prime Minister will attend the G7 Leaders' Summit alongside Mr Trump in Alberta, Canada, from June 15 to 17, creating an opportunity to finally meet face-to-face with the President, although no plans have been confirmed. The Trump administration has called for Australia to lift defence spending and complained about strict biosecurity rules for meat imports, as well as the low prices paid for US-made medicines on the PBS, while holding out on providing exemptions to sweeping tariffs imposed on key Australian exports. Mr Albanese told the National Press Club on Wednesday that his government would not trade away "the things that make us the best country on earth" and said while he did not want to pre-empt any conversation with the President, "we'll only sign up to things that are in Australia's national interest." "Australia should decide what we spend on Australia's defence. Simple as that," the Prime Minister said. "We will always provide for capability that's needed." AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison. It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats, although the first submarine is not expected to join the Australian fleet for years. Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is supposed to initially buy between three and five off-the-shelf Virginia-class boats. But military experts say that while the US has the largest nuclear-powered submarine fleet in the world, its shipyards are not building them fast enough to meet the US Navy's own needs. The AUKUS review will be headed by US defence undersecretary Elbridge Colby and is expected to take about 30 days. The United Kingdom had recently completed an AUKUS review and reaffirmed its support, appointing Sir Stephen Lovegrove as its AUKUS Adviser. Greens Defence and Foreign Affairs spokesperson David Shoebridge predicted that Mr Trump would "use this review to either terminate AUKUS and pocket the money already paid, or extract an even more eye-watering sum from Australia to stay in the sinking project without any hard promises for the US to deliver." "Donald Trump is erratic, reckless and careless of America's allies and alliances but he does have one fairly constant trait, he puts US interests first and allies last," Senator Shoebridge said. "The USA reviewing AUKUS shows what the Greens have been warning about for years - this deal makes Australia a junior partner in America's military strategy, not an equal ally. "The Australian public deserves an urgent inquiry into AUKUS before Labor wastes more billions on submarines we will never see. "It's pretty clear what any US review into AUKUS will say, the US does not have any spare submarines to give to Australia." Senator McKenzie said there was "now a growing list of serious issues and tasks for the prime minister with his meeting with President Trump next week." "Any undermining of this serious and substantial alliance between our two countries should be of grave concern to all of us because the reality is there is a very real vulnerability for us," she said. "Obviously, we wish him every success in strengthening that relationship and not weakening it." The spokesperson for Mr Marles said there was bipartisan support for AUKUS in the United States, noting the passage of provisions in the National Defence Authorization Act in 2023 to enable the transfer of US Virginia class submarines to Australia, and to enable Australians to work on maintenance activities of US Virginia class submarines. "Our engagement with the Trump Administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS," the spokesperson said. "We look forward to continuing our close cooperation with the Trump Administration on this historic project." Mr Albanese has previously discussed AUKUS in phone calls with Mr Trump, while Mr Marles has discussed the deal with US Secretary of Defence Pete Hegseth, both in February and May. "The president is very aware, supportive of AUKUS," Mr Hegseth said after the February meeting with Mr Marles. "(He) recognises the importance of the defence industrial base." Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS. Foreign Minister Penny Wong discussed AUKUS with US Secretary of State Marco Rubio in January. Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034. The US administration has called for Australia to increase that spending to around 3.5 per cent. Opposition Defence Spokesperson Angus Taylor last week called on the Albanese government to commit to "at least" 3 per cent, but Mr Albanese on Wednesday said he would not set an "arbitrary" figure. Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own. The first Australian-made boats are not due to be operational until the 2040s. The United States has launched a snap review of the AUKUS submarine deal, throwing its $368 billion security pact with Australia into doubt just as Prime Minister Anthony Albanese prepares for a potential meeting with Donald Trump. After news broke overnight of the development, with the Pentagon reportedly saying the AUKUS deal must be weighed to establish whether it aligns with Mr Trump's "America First" approach, a spokesperson for Deputy Prime Minister Richard Marles said in a statement that it was "natural that the Administration would want to examine this major undertaking, including progress and delivery." "We are committed to AUKUS and we look forward to working closely with the US on the review," the spokesperson said. "The United States advised Australia and the UK of the review. All three countries are committed to ensuring AUKUS meets national and trilateral objectives. "Importantly, AUKUS will grow both US and Australian defence industry as well as generating thousands of new manufacturing jobs." The Coalition responded with concern, with opposition frontbencher Bridget McKenzie telling Nine's Today the AUKUS pact and Australia's strategic defence partnership with the US needed to be "the Prime Minister's primary concern." "[It is] a deeply concerning development," Senator McKenzie said. "We cannot defend ourselves without these relationships." The Prime Minister will attend the G7 Leaders' Summit alongside Mr Trump in Alberta, Canada, from June 15 to 17, creating an opportunity to finally meet face-to-face with the President, although no plans have been confirmed. The Trump administration has called for Australia to lift defence spending and complained about strict biosecurity rules for meat imports, as well as the low prices paid for US-made medicines on the PBS, while holding out on providing exemptions to sweeping tariffs imposed on key Australian exports. Mr Albanese told the National Press Club on Wednesday that his government would not trade away "the things that make us the best country on earth" and said while he did not want to pre-empt any conversation with the President, "we'll only sign up to things that are in Australia's national interest." "Australia should decide what we spend on Australia's defence. Simple as that," the Prime Minister said. "We will always provide for capability that's needed." AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison. It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats, although the first submarine is not expected to join the Australian fleet for years. Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is supposed to initially buy between three and five off-the-shelf Virginia-class boats. But military experts say that while the US has the largest nuclear-powered submarine fleet in the world, its shipyards are not building them fast enough to meet the US Navy's own needs. The AUKUS review will be headed by US defence undersecretary Elbridge Colby and is expected to take about 30 days. The United Kingdom had recently completed an AUKUS review and reaffirmed its support, appointing Sir Stephen Lovegrove as its AUKUS Adviser. Greens Defence and Foreign Affairs spokesperson David Shoebridge predicted that Mr Trump would "use this review to either terminate AUKUS and pocket the money already paid, or extract an even more eye-watering sum from Australia to stay in the sinking project without any hard promises for the US to deliver." "Donald Trump is erratic, reckless and careless of America's allies and alliances but he does have one fairly constant trait, he puts US interests first and allies last," Senator Shoebridge said. "The USA reviewing AUKUS shows what the Greens have been warning about for years - this deal makes Australia a junior partner in America's military strategy, not an equal ally. "The Australian public deserves an urgent inquiry into AUKUS before Labor wastes more billions on submarines we will never see. "It's pretty clear what any US review into AUKUS will say, the US does not have any spare submarines to give to Australia." Senator McKenzie said there was "now a growing list of serious issues and tasks for the prime minister with his meeting with President Trump next week." "Any undermining of this serious and substantial alliance between our two countries should be of grave concern to all of us because the reality is there is a very real vulnerability for us," she said. "Obviously, we wish him every success in strengthening that relationship and not weakening it." The spokesperson for Mr Marles said there was bipartisan support for AUKUS in the United States, noting the passage of provisions in the National Defence Authorization Act in 2023 to enable the transfer of US Virginia class submarines to Australia, and to enable Australians to work on maintenance activities of US Virginia class submarines. "Our engagement with the Trump Administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS," the spokesperson said. "We look forward to continuing our close cooperation with the Trump Administration on this historic project." Mr Albanese has previously discussed AUKUS in phone calls with Mr Trump, while Mr Marles has discussed the deal with US Secretary of Defence Pete Hegseth, both in February and May. "The president is very aware, supportive of AUKUS," Mr Hegseth said after the February meeting with Mr Marles. "(He) recognises the importance of the defence industrial base." Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS. Foreign Minister Penny Wong discussed AUKUS with US Secretary of State Marco Rubio in January. Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034. The US administration has called for Australia to increase that spending to around 3.5 per cent. Opposition Defence Spokesperson Angus Taylor last week called on the Albanese government to commit to "at least" 3 per cent, but Mr Albanese on Wednesday said he would not set an "arbitrary" figure. Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own. The first Australian-made boats are not due to be operational until the 2040s. The United States has launched a snap review of the AUKUS submarine deal, throwing its $368 billion security pact with Australia into doubt just as Prime Minister Anthony Albanese prepares for a potential meeting with Donald Trump. After news broke overnight of the development, with the Pentagon reportedly saying the AUKUS deal must be weighed to establish whether it aligns with Mr Trump's "America First" approach, a spokesperson for Deputy Prime Minister Richard Marles said in a statement that it was "natural that the Administration would want to examine this major undertaking, including progress and delivery." "We are committed to AUKUS and we look forward to working closely with the US on the review," the spokesperson said. "The United States advised Australia and the UK of the review. All three countries are committed to ensuring AUKUS meets national and trilateral objectives. "Importantly, AUKUS will grow both US and Australian defence industry as well as generating thousands of new manufacturing jobs." The Coalition responded with concern, with opposition frontbencher Bridget McKenzie telling Nine's Today the AUKUS pact and Australia's strategic defence partnership with the US needed to be "the Prime Minister's primary concern." "[It is] a deeply concerning development," Senator McKenzie said. "We cannot defend ourselves without these relationships." The Prime Minister will attend the G7 Leaders' Summit alongside Mr Trump in Alberta, Canada, from June 15 to 17, creating an opportunity to finally meet face-to-face with the President, although no plans have been confirmed. The Trump administration has called for Australia to lift defence spending and complained about strict biosecurity rules for meat imports, as well as the low prices paid for US-made medicines on the PBS, while holding out on providing exemptions to sweeping tariffs imposed on key Australian exports. Mr Albanese told the National Press Club on Wednesday that his government would not trade away "the things that make us the best country on earth" and said while he did not want to pre-empt any conversation with the President, "we'll only sign up to things that are in Australia's national interest." "Australia should decide what we spend on Australia's defence. Simple as that," the Prime Minister said. "We will always provide for capability that's needed." AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison. It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats, although the first submarine is not expected to join the Australian fleet for years. Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is supposed to initially buy between three and five off-the-shelf Virginia-class boats. But military experts say that while the US has the largest nuclear-powered submarine fleet in the world, its shipyards are not building them fast enough to meet the US Navy's own needs. The AUKUS review will be headed by US defence undersecretary Elbridge Colby and is expected to take about 30 days. The United Kingdom had recently completed an AUKUS review and reaffirmed its support, appointing Sir Stephen Lovegrove as its AUKUS Adviser. Greens Defence and Foreign Affairs spokesperson David Shoebridge predicted that Mr Trump would "use this review to either terminate AUKUS and pocket the money already paid, or extract an even more eye-watering sum from Australia to stay in the sinking project without any hard promises for the US to deliver." "Donald Trump is erratic, reckless and careless of America's allies and alliances but he does have one fairly constant trait, he puts US interests first and allies last," Senator Shoebridge said. "The USA reviewing AUKUS shows what the Greens have been warning about for years - this deal makes Australia a junior partner in America's military strategy, not an equal ally. "The Australian public deserves an urgent inquiry into AUKUS before Labor wastes more billions on submarines we will never see. "It's pretty clear what any US review into AUKUS will say, the US does not have any spare submarines to give to Australia." Senator McKenzie said there was "now a growing list of serious issues and tasks for the prime minister with his meeting with President Trump next week." "Any undermining of this serious and substantial alliance between our two countries should be of grave concern to all of us because the reality is there is a very real vulnerability for us," she said. "Obviously, we wish him every success in strengthening that relationship and not weakening it." The spokesperson for Mr Marles said there was bipartisan support for AUKUS in the United States, noting the passage of provisions in the National Defence Authorization Act in 2023 to enable the transfer of US Virginia class submarines to Australia, and to enable Australians to work on maintenance activities of US Virginia class submarines. "Our engagement with the Trump Administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS," the spokesperson said. "We look forward to continuing our close cooperation with the Trump Administration on this historic project." Mr Albanese has previously discussed AUKUS in phone calls with Mr Trump, while Mr Marles has discussed the deal with US Secretary of Defence Pete Hegseth, both in February and May. "The president is very aware, supportive of AUKUS," Mr Hegseth said after the February meeting with Mr Marles. "(He) recognises the importance of the defence industrial base." Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS. Foreign Minister Penny Wong discussed AUKUS with US Secretary of State Marco Rubio in January. Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034. The US administration has called for Australia to increase that spending to around 3.5 per cent. Opposition Defence Spokesperson Angus Taylor last week called on the Albanese government to commit to "at least" 3 per cent, but Mr Albanese on Wednesday said he would not set an "arbitrary" figure. Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own. The first Australian-made boats are not due to be operational until the 2040s. The United States has launched a snap review of the AUKUS submarine deal, throwing its $368 billion security pact with Australia into doubt just as Prime Minister Anthony Albanese prepares for a potential meeting with Donald Trump. After news broke overnight of the development, with the Pentagon reportedly saying the AUKUS deal must be weighed to establish whether it aligns with Mr Trump's "America First" approach, a spokesperson for Deputy Prime Minister Richard Marles said in a statement that it was "natural that the Administration would want to examine this major undertaking, including progress and delivery." "We are committed to AUKUS and we look forward to working closely with the US on the review," the spokesperson said. "The United States advised Australia and the UK of the review. All three countries are committed to ensuring AUKUS meets national and trilateral objectives. "Importantly, AUKUS will grow both US and Australian defence industry as well as generating thousands of new manufacturing jobs." The Coalition responded with concern, with opposition frontbencher Bridget McKenzie telling Nine's Today the AUKUS pact and Australia's strategic defence partnership with the US needed to be "the Prime Minister's primary concern." "[It is] a deeply concerning development," Senator McKenzie said. "We cannot defend ourselves without these relationships." The Prime Minister will attend the G7 Leaders' Summit alongside Mr Trump in Alberta, Canada, from June 15 to 17, creating an opportunity to finally meet face-to-face with the President, although no plans have been confirmed. The Trump administration has called for Australia to lift defence spending and complained about strict biosecurity rules for meat imports, as well as the low prices paid for US-made medicines on the PBS, while holding out on providing exemptions to sweeping tariffs imposed on key Australian exports. Mr Albanese told the National Press Club on Wednesday that his government would not trade away "the things that make us the best country on earth" and said while he did not want to pre-empt any conversation with the President, "we'll only sign up to things that are in Australia's national interest." "Australia should decide what we spend on Australia's defence. Simple as that," the Prime Minister said. "We will always provide for capability that's needed." AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison. It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats, although the first submarine is not expected to join the Australian fleet for years. Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is supposed to initially buy between three and five off-the-shelf Virginia-class boats. But military experts say that while the US has the largest nuclear-powered submarine fleet in the world, its shipyards are not building them fast enough to meet the US Navy's own needs. The AUKUS review will be headed by US defence undersecretary Elbridge Colby and is expected to take about 30 days. The United Kingdom had recently completed an AUKUS review and reaffirmed its support, appointing Sir Stephen Lovegrove as its AUKUS Adviser. Greens Defence and Foreign Affairs spokesperson David Shoebridge predicted that Mr Trump would "use this review to either terminate AUKUS and pocket the money already paid, or extract an even more eye-watering sum from Australia to stay in the sinking project without any hard promises for the US to deliver." "Donald Trump is erratic, reckless and careless of America's allies and alliances but he does have one fairly constant trait, he puts US interests first and allies last," Senator Shoebridge said. "The USA reviewing AUKUS shows what the Greens have been warning about for years - this deal makes Australia a junior partner in America's military strategy, not an equal ally. "The Australian public deserves an urgent inquiry into AUKUS before Labor wastes more billions on submarines we will never see. "It's pretty clear what any US review into AUKUS will say, the US does not have any spare submarines to give to Australia." Senator McKenzie said there was "now a growing list of serious issues and tasks for the prime minister with his meeting with President Trump next week." "Any undermining of this serious and substantial alliance between our two countries should be of grave concern to all of us because the reality is there is a very real vulnerability for us," she said. "Obviously, we wish him every success in strengthening that relationship and not weakening it." The spokesperson for Mr Marles said there was bipartisan support for AUKUS in the United States, noting the passage of provisions in the National Defence Authorization Act in 2023 to enable the transfer of US Virginia class submarines to Australia, and to enable Australians to work on maintenance activities of US Virginia class submarines. "Our engagement with the Trump Administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS," the spokesperson said. "We look forward to continuing our close cooperation with the Trump Administration on this historic project." Mr Albanese has previously discussed AUKUS in phone calls with Mr Trump, while Mr Marles has discussed the deal with US Secretary of Defence Pete Hegseth, both in February and May. "The president is very aware, supportive of AUKUS," Mr Hegseth said after the February meeting with Mr Marles. "(He) recognises the importance of the defence industrial base." Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS. Foreign Minister Penny Wong discussed AUKUS with US Secretary of State Marco Rubio in January. Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034. The US administration has called for Australia to increase that spending to around 3.5 per cent. Opposition Defence Spokesperson Angus Taylor last week called on the Albanese government to commit to "at least" 3 per cent, but Mr Albanese on Wednesday said he would not set an "arbitrary" figure. Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own. The first Australian-made boats are not due to be operational until the 2040s.
News.com.au
21 minutes ago
- News.com.au
‘Debacle': Malcolm Turnbull trashes Aussie sub ‘fiasco' as Trump administration announces review into deal
Malcolm Turnbull has warned the AUKUS nuclear power submarine deal risks becoming a billion-dollar 'fiasco' for Australia as the United States announces a bombshell review into its future. Australia made its first AUKUS down payment to the US in February, transferring nearly $800 million to help boost the country's submarine production. Overnight, The Trump Administration announced its biggest AUKUS sceptic Elbridge Colby will head a review into whether the US should pull out of the submarine deal with Australia. Now former Prime Minister Malcolm Turnbull has told that the 'terrible deal' inked by Scott Morrison had always included a clause or caveat that no submarines will be handed over unless it had submarines to spare. 'So this is a risk that Australia has taken with its eyes wide open,'' Mr Turnbull said. 'It will be a fiasco, I think. So that's one alternative. Another alternative is to go back to France. They've been double crossed once before. 'It is a debacle. I've been saying this for years. It was a debacle when Morrison recklessly entered into it, and it was a debacle when Labor, to avoid a political wedge, went along. 'It's fundamentally a bad deal. I'm not saying naval nuclear propulsion is a bad idea. It's a good idea, but it's, you know, a very expensive one, and you sure you can pay for it. 'But the, but the problem with this deal is it's so asymmetrical, you know, we give the Americans $3 billion, they only have to give us submarines if they feel they could spare them. 'This whole exercise is designed to get us nuclear powered submarines, but the upshot could be that we end up with no submarines at all.' 'All or nothing' submarine deal Australia's former US ambassador Joe Hockey said Australia's defence spending is likely being used by Washington as an excuse to launch a review into the AUKUS pact. Speaking with ABC's Radio National Breakfast, Joe Hockey said the deal was 'all or nothing'. 'If we don't get the Virginia Class submarines in 2032, we have no options left. We have no submarines,' he said. 'So this is all or nothing for Australia. And for the sake of our national security, we need to make sure that we can at least provide some deterrent for potential hostile threats to our nations.' 'We have something to trade on AUKUS. Not only are we paying for our submarines, not only have we paid forward with a $500m check but an Australian company that most people have never heard of, called Austal, is actually helping build the AUKUS submarines … so not only are we paying for them, we're helping to build them. 'That's the sort of trade that Donald Trump would not be aware of'. Defence Minister Richard Marles reacts to AUKUS news Defence Minister Richard Marles has broken his silence on US moves to review the AUKUS security pact insisting the US and Australia remained committed to the deal. 'The United States advised Australia and the UK of the review,'' he said on Thursday morning. 'It is natural that the Administration would want to examine this major undertaking including progress and delivery, just as the UK Government recently concluded an AUKUS review and reaffirmed its support including through the appointment of Sir Stephen Lovegrove as its AUKUS Adviser. 'All three countries are committed to ensuring AUKUS meets national and trilateral objectives. 'Importantly, AUKUS will grow both the US and Australian defence industry as well as generating thousands of new manufacturing jobs. 'There is bipartisan support in the United States with the passage of important provisions in the National Defence Authorization Act in 2023 to enable the transfer of US Virginia class submarines to Australia, and to enable Australians to work on maintenance activities of US Virginia class submarines.' 'Our engagement with the Trump Administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS. 'We look forward to continuing our close cooperation with the Trump Administration on this historic project.' The Prime Minister discussed the AUKUS deal in a phone call with President Trump on February 11 and as recently as May 5. The Deputy Prime Minister also discussed AUKUS with Secretary of Defense Peter Hegseth May 30, just 12 days ago. 'Catastrophic' move A former top advisor to US President Donald Trump has warned that cancelling the AUKUS pact would be 'catastrophic'. John Bolton, who served as President Trump's national security advisor, told Nine the review is likely aimed at scaling back AUKUS, or abandoning the pact altogether. 'It's more a question of how much of a downsize (of AUKUS) they are looking at, including potentially total cancellation — which would be catastrophic, a huge mistake for the US with enormous consequences for Australia and the UK.' Democratic Senator Jeanne Shaheen warned that Beijing would be cheering at the news. 'News that the Trump Administration is considering backing away from AUKUS will be met with cheers in Beijing, which is already celebrating America's global pullback and our strained ties with allies under President Trump,' Senator Shaheen said. 'Scrapping this partnership would further tarnish America's reputation and raise more questions among our closest defence partners and our reliability.' In a statement, the Pentagon confirmed the review was aimed at ensuring AUKUS served the best interests of the United States. 'The Department is reviewing AUKUS as part of ensuring that this initiative of the previous Administration is aligned with the President's America First agenda,' the statement said. 'As (Defence) Secretary (Pete) Hegseth has made clear, this means ensuring the highest readiness of our servicemembers, that allies step up fully to do their part for collective defence, and that the defence industrial base is meeting our needs,' the Pentagon said. 'This review will ensure the initiative meets these common sense, America First criteria.'
Sky News AU
34 minutes ago
- Sky News AU
US reviewing AUKUS as Trump pursues ‘America first agenda'
The US is reviewing the AUKUS defence pact with Australia and the UK to ensure it aligns with Donald Trump's 'America First' agenda. Australia has already spent billions on laying the groundwork to acquire and build nuclear-powered submarines and train personnel to crew them under the trilateral partnership. US defence officials said overnight the move was about 'ensuring the highest readiness of our servicemembers'. 'The Department is reviewing AUKUS as part of ensuring that this initiative of the previous Administration is aligned with the President's America First agenda,' they said in a statement. 'As Secretary Hegseth has made clear, this means ensuring the highest readiness of our servicemembers, that allies step up fully to do their part for collective defence, and that the defence industrial base is meeting our needs. 'This review will ensure the initiative meets these common sense, America First criteria.' Deputy Prime Minister Richard Marles on Thursday downplayed the review, saying it was 'natural that the (Trump) administration would want to examine this major undertaking'. 'We are committed to AUKUS and we look forward to working closely with the US on the review,' he said in a statement. 'The United States advised Australia and the UK of the review. 'It is natural that the (Trump) administration would want to examine this major undertaking including progress and delivery, just as the UK government recently concluded an AUKUS review and reaffirmed its support including through the appointment of Sir Stephen Lovegrove as its AUKUS adviser. 'All three countries are committed to ensuring AUKUS meets national and trilateral objectives.' Mr Marles, who also holds the defence portfolio, stressed AUKUS would 'grow both US and Australian defence industry as well as generating thousands of new manufacturing jobs'. 'Our engagement with the Trump Administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS,' he said. 'We look forward to continuing our close co-operation with the Trump Administration on this historic project.' The review is led by top Pentagon adviser and AUKUS sceptic Elbridge Colby. Mr Colby has criticised Australia for not splashing enough cash to counter China. 'The main concern the United States should press with Australia, consistent with the President's approach, is higher defence spending,' Mr Colby said in written answers to the committee confirming his appointment in March. 'Australia is currently well below the 3 per cent level advocated for NATO, by NATO Secretary General (Mark) Rutte, and Canberra faces a far more powerful challenge in China.' Anthony Albanese pushed back at the time, describing the Australia-US alliance as 'secure'. But US Defence Secretary Pete Hegseth renewed Washington's call for Canberra to hike defence spending earlier this month amid an 'imminent' threat from China. Mr Hegseth told Mr Marles Australia should be spending 3.5 per cent of GDP on defence. Both Mr Marles and the Prime Minister have repeatedly rejected the request, saying Australia would determine its own national interest. In the US Democratic congressman Joe Courtney, co-chair of the Congressional AUKUS Working Group, has slammed the review. Taking to social media, Mr Courtney said the collapse of the pact would spark 'rejoice in Beijing'. 'The Trump administration has the right to review AUKUS, but just like the UK's own review found, AUKUS is overwhelmingly in the interest of all 3 nations and the entire Indo-Pacific,' he said. 'Abandoning AUKUS would cause lasting harm to our standing with close allies and rejoice in Beijing.' 'Strength to strength' Meanwhile, Australia's ambassador in Washington has praised the Australia-US alliance at an event with conservatives. 'As the Australian government, we've worked closely with 15 American presidents, Republican and Democrat … in the post war period,' Kevin Rudd told attendees. 'Fifteen Australian prime ministers, Labor and conservative, and I've been one of them. 'And the relationship gets closer and closer and closer. 'Of course, we got a bunch of common values and a common interest, which unite us now.' The former Labor prime minister has faced questions about his ability to best represent Australia in the US due to his past criticisms of Donald Trump. Over the past decade, Mr Rudd has called the US President a 'village idiot', 'nuts', the 'most destructive president in history' and a 'traitor to the West'. Mr Trump has called Mr Rudd 'nasty' and 'not the brightest bulb'. Mr Rudd has the firm backing of Labor, with the Albanese government crediting him with much of the diplomatic legwork around AUKUS. Originally published as US reviewing AUKUS as Trump pursues 'America First' agenda
