Foreign Minister defends military spending amid ‘imminent' China threat
Australia's chief diplomat has defended Labor's hesitancy to join allies in ramping up defence spending, saying the Albanese government 'will fund what is required' despite warnings of an 'imminent' threat from China.
The Trump administration earlier this month called on Australia to hike the military budget to 3.5 per cent of GDP, after years of flatlining near 2 per cent.
Anthony Albanese and his ministers have pushed back, insisting Australia was pulling its weight on defence and that spending was a matter for Canberra, not Washington.
But many of Australia's closest allies have committed to spending more on defence amid conflicts on multiple continents and an increasingly inward-looking US, making the Albanese government somewhat of an outlier.
Foreign Minister Penny Wong said on Sunday the Prime Minister's position was 'very clear'.
'We assess capability requirements and we make sure that they are funded appropriately,' Senator Wong told the ABC.
She was pressed on why the Albanese government took a different view to the likes of the UK, Germany and France, all of which have committed to spending at least 3 per cent of GDP on defence.
'Because we will fund what is required,' Senator Wong said, repeating that the Australian Defence Force would be funded 'by assessing capability and ensuring that we provide for the capability that is required'.
US Defence Secretary Pete Hegseth raised Australia's defence budget with Deputy Prime Minister Richard Marles on the sidelines of the Shangri La Dialogue.
Mr Hegseth used his speech at the security conference to warn that China could invade the democratically self-governing island of Taiwan as early as 2027.
Such a move would deal a major blow to global supply of semiconductors – crucial components in modern tech – and massively disrupt vital trade routes.
'Let me be clear, any attempt by Communist China to conquer Taiwan by force would result in devastating consequences for the Indo-Pacific and the world,' Mr Hegseth said.
'There's no reason to sugar-coat it. The threat China poses is real and it could be imminent.
'We hope not but certainly could be.'
In her Sunday comments, Senator Wong reiterated Australia's bipartisan 'support (for) the status quo' on Taiwan.
'We oppose any unilateral changes to the status quo and we urge these matters to be dealt with peacefully,' she said.
'China … has been exerting its influence, exerting its power in order to progress its interests in our region. That is very clear.
'I have spoken about that for many years. At times those interests will be different to Australia's. We understand that, which is why we do many things.
'We engage bilaterally, but we also engage with partners including the United States because what Australia wants is a region where no country dominates and no country is dominated.
'That requires strategic balance, it requires engagement of the US, and it requires all countries of the region to play their part.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
an hour ago
- News.com.au
Barnaby Joyce calls for ‘contingency plan' as US reviews AUKUS
Nationals heavyweight Barnaby Joyce is calling for a 'contingency plan' as the US reviews AUKUS. The $368bn defence pact with the US and the UK is the centrepiece of Australia's defence strategy for the first half of this century. Under trilateral partnership, Washington has committed to giving Australia at least three Virginia-class submarines starting in 2032. But sluggish production of the nuclear-powered boats has put the US on track to face a shortage early next decade, casting serious doubt on whether it can follow through without jeopardising its own defence. Donald Trump can renege on AUKUS commitments if they put US national security at risk. Mr Joyce was deputy prime minister when Australia signed up to AUKUS under the former Coalition government. He took aim at the Albanese government's response to the review on Monday. 'We should have a contingency plan, absolutely,' Mr Joyce told Seven. 'As soon as the United States said 'we're reviewing AUKUS', alarm bells should've rung everywhere. 'Hang on, we're not going to be able to defend ourselves.' The opposition has called on Anthony Albanese to shore up support for AUKUS when he meets the US President on the sidelines of the G7 in Canada. The Prime Minister over the weekend confirmed his first face-to-face had been 'scheduled' with Mr Trump after the US leader confirmed he was attending the summit.
News.com.au
an hour ago
- News.com.au
Rare earth plays charting new route to the future
For years, China has wielded rare earths like a sword, threatening export bans, restricting supply and controlling pricing Lynas has proven there are alternative pathways following the production of dysprosium at its Malaysia plant Here are some other heavy rare earth ASX players shaking things up China's decades-long dominance in rare earth production isn't by chance. It's the culmination of smart investments over many decades and a high tolerance for environmental trade-offs, while other nations have grappled with tighter regulations and higher costs. Its control over nearly 90% of global rare earth refining and close to 70% of total output, has seen China become the indispensable supplier, leaving other countries vulnerable to price shocks and geopolitical supply disruptions. The Middle Kingdom has used the resource as a bargaining chip in international relations by flexing its economic muscles and threatening export bans, like its decision earlier this year to suspend all exports of seven kinds of rare earth metals. These included dysprosium, gadolinium, lutetium, samarium, scandium, terbium and yttrium, all vital inputs to almost everything technological like smart phones, electric vehicles, missiles and wind turbines. But all of that could soon change. Last month, $8.21b miner Lynas (ASX:LYC), became the first to break China's grip on heavy rare earths, producing dysprosium at its Malaysia plant and rewriting the global supply map. It makes Lynas's new production line the world's only commercial producer of separated heavy rare earth products outside of China. North Stanmore draws US government interest Dysprosium stands out among other heavy rare earth metals primarily due to its unique magnetic properties, high melting point and ability to absorb neutrons, making it crucial in high-tech applications through its use in permanent magnets and nuclear reactors. It is often added to neodymium-iron-boron magnetics to improve their performance at high temperatures, making them more efficient and durable. Its ability to absorb neutrons makes it ideal for use in nuclear reactors, particularly in control rods where it helps regulate the fission reaction. While Australia's rare earth production numbers pale in comparison to that of China, accounting for only 3.33% of global production in 2024, ASX explorers and developers such as Victory Metals (ASX:VTM) are emerging as competitive players in the rare earth space. Some projects even contain un-paralleled ratios of magnet rare earth elements such as VTM's North Stanmore clay-hosted heavy rare earth project in WA, which holds a 247.5 million DMT resource at 520ppm total rare earth oxide and 4788t of gallium oxide. North Stanmore's basket of critical metals has grown to include by-product gallium, key heavy rare earths such as gadolinium, terbium, dysprosium, lutetium,and yttrium, in addition to the light rare earth samarium and by-product scandium. The project has attracted international government-backed support following a letter of interest from the Export-Import Bank of the US in April for up to US$190m in project financing. Further funds ($4m) were raised in May with strong backing from VTM's top 20 shareholders to accelerate a PFS after a scoping study in March delivered an impressive case for the project with an NPV exceeding $1212m and IRR of 52%. 'Running our own race' In response to Lynas achieving first production of dysprosium oxide outside China, VTM CEO Brendan Clark said it was a game changer for ASX listed rare earth companies, particularly those with exposure to heavy rare earth elements. 'It proves that it's technically and commercially viable to extract and process heavy rare earths outside China, which is a big deal and exciting milestone for Lynas,' he said. 'It is Victory Metals' vision to separate high-value critical minerals like dysprosium and terbium from our mixed rare earth carbonate right here in Western Australia. 'We've already achieved the highest confirmed production of heavy rare earth Mixed Rare Earth Carbonate (MREC) from any clay hosted project in the country,' Clark said. 'Our unmatched metallurgical recoveries are a direct result of our unique geological setting underpinned by a deeply weathered, rare earth and critical mineral enriched alkaline intrusion that has been transformed over millions of years through multiple intense weathering cycles.' Test work carried out on North Stanmore last year demonstrated outstanding recoveries of 93% for high value magnet rare earths, alongside high recoveries of scandium (50%). More recently, VTM produced gallium in its final mixed rare earth carbonate (MREC) product at 358 g/t gallium oxide, positioning North Stanmore at the forefront of Australian gallium exploration. 'We're running our own race, rare earth companies tend to keep their IP and processing methods tightly held,' he said. 'That said, given the strategic and commercial value of specific heavy rare earths like dysprosium and terbium, we do see an opportunity to downstream further in the future and we're currently exploring those options with strategic partners who bring the technical capability.' Some other ASX heavy rare earth players RareX (ASX:REE) owns the Cummins Range project in WA, where high-grade gallium containing values up to 6826g/t has been identified, and is pitching for one of the world's top undeveloped rare earth sites in Kenya. Last month, REE announced a consortium with Iluka Resources (ASX:ILU) to secure and develop the Mrima Hill project in Kenya as the first step in the building of a non-Chinese rare earths supply chain. Mrima Hill ranks as one of the top five undeveloped rare earth deposits in the world, while Iluka's under-construction rare earths processing facility at Eneabba in WA, could process RareX's ore from Mrima Hill in a very efficient way. REE and ILU proposed a joint venture with the National Mining Corporation of Kenya (NAMICO), and have seen a positive response from Kenya's High Commissioner to Australia Dr Wilson Kogo. Aldoro Resources (ASX:ARN) owns the Kameelburg REE niobium project, 300km north of Windhoek in Namibia. In May, the company reported the highest grades to date at the site, which confirmed a significant southwest extension and effectively doubling the footprint of the polymetallic discovery. Significant new intercepts include 293m at 3.67% total rare earth oxide (TREO) equivalent from 3m, comprising 2.1% TREO, 0.21% niobium pentoxide and 448ppm molybdenum. Over in Brazil, Brazilian Critical Minerals (ASX:BCM) Ema project hosts one of the largest clay rare earth deposits globally, with a mineral resource of 943Mt at 716ppm TREO, including a 341Mt starter zone with high-value magnet REE content. The project is one of the few fully in-situ recovery rare earth projects outside of South East Asia. ISR involves dissolving mineral deposits while still underground using chemical solutions, that are then pumped to surface to be processed into mineral products. This method of mining tends to be kinder on the local environment while also offering lower costs. A recent, heavily subscribed $4m placement has allowed BCM to accelerate a BFS, complete pilot field trials for in-situ recovery (ISR), progress environmental permitting and strengthen its working capital position to support pre-development activities. VHM's (ASX:VHM) Goschen project in Victoria has an ore reserve of 210 million tonnes within a massive resource of 892Mt at 3% total heavy minerals and is also rich in rare earths. This is more than enough to fuel an initial 1.5Mtpa operation using a modular plant that has estimated pre-production capital costs of $160m. Stage 1 will produce some 4300 tonnes per annum of rare earth mineral concentrate and 69,000tpa of zircon/titania heavy mineral concentrate at operating costs of $77 million per year. It is expected to fund the stage two expansion to 5Mtpa, which will cost an additional $85-90m and take production up to 9000tpa of rare earths and 134,000tpa of HMC for at least 19 years.
News.com.au
an hour ago
- News.com.au
Geopacific gets a shot in the arm with St Barbara backing
One of Australia's top mining journalists, Kristie Batten, writes for Stockhead every week in her regular column placing a watchful eye on the movers and shakers of the small cap resources scene. Geopacific Resources (ASX:GPR) has got a busy six months ahead as it firms up the development plans for its Woodlark Island gold project in Papua New Guinea. The company is well-funded to complete the definitive feasibility study, having raised $40 million at the start of the year, which represented one of the biggest raisings by a junior in an otherwise bleak March quarter for fundraisings. The company will also complete a further 30,000m of reverse circulation and diamond drilling with the aim of growing the resource, which stands at 45.56 million tonnes at 1.07 grams per tonne gold for 1.56 million ounces. 'The intent of that is really to position ourselves by the end of this year, early into next year, so that we've obviously got a much better idea of the project economics and it's been de-risked, and we're also having more advanced discussions with either financiers or other mid-tier miners that see the same value that we do,' Geopacific CEO James Fox told Stockhead. 'We haven't decided exactly which way we want to go, whether or not we develop it ourselves, or whether we partner up with a group – I don't think they're mutually exclusive.' New major shareholder Geopacific's largest shareholder with 46.1% is Germany's Deutsche Balaton and Delphi, which are active investors in Australia's resources space. Another company backed by the German group, Patronus Resources (ASX:PTN), sub-underwrote Geopacific's $40 million raising, acquiring a 15.7% stake. Earlier this month, Patronus agreed to swap its stake in Geopacific with St Barbara (ASX:SBM), buying back St Barbara's stake in Patronus. St Barbara, which operates the Simberi mine in PNG, now holds 14.4% of Geopacific. Geopacific shares had been flat all year but are up 20% this month. Fox said he'd been in contact with St Barbara managing director Andrew Strelein in the past. 'We're figuring out how Geopacific and Woodlark can leverage off St Barbara's position in PNG, in terms of expertise, in terms of personnel, in terms of insights and whether or not there are any opportunities for us to collaborate, whether it be on a project or obviously, on a company wide basis,' he said. 'I think it'd be great to get some of their exploration team over to our project whilst we're drilling, obviously to have a look at some of the porphyry potential that we've been looking at, as well as the general program that we're currently working on.' While the political system in PNG is stable under Prime Minister James Marape, the government is looking to update the country's mining code later this year. 'Given that are operating there, it does allow us to leverage off some of their experience, in terms of negotiating with the state as well,' Fox said. Woodlark refresh A previous management team of Geopacific had pushed the button on a $225 million mine but halted construction in 2021 after spending $100 million, due to inflation, bad weather and the pandemic. Under Fox, who joined in late 2023, the company spent the first six months of last year applying the lessons learned from previous construction and preparing a new scoping study. The study, released in July 2024, outlined $326 million to produce 95,000 ounces of gold per annum at all-in sustaining costs of $1534 per ounce and all-in costs of $1820/oz over 12 years. Undiscounted life of mine revenue was forecast at $3.3 billion, while pre-tax net cashflow was estimated to be $1.3 billion. The study returned a post-tax net present value of $501 million, an internal rate of return of 37.7% and 18-month payback period. However, the study used a gold price of just $2900/oz, around 45% lower than today's spot price. 'Because the gold price has moved so much, so quickly, there's a huge amount of catch-up to play,' Fox said. 'And of course, what that does for us, and lots of prospective gold companies, it allows you to have a sort of a more critical look at your project and focus on the areas that are more profitable and the economics are better than just volume. 'It's not necessarily about producing as much gold as we can. It's about producing the most gold at the best cost.' The DFS will also look at increasing the throughput rate beyond the 2.9Mt per annum envisaged in the scoping study given more than 400,000oz of the resource was not included. 'It's much better for us to increase the throughput rate to maintain the same mine life, then bring the cashflow forward in terms of the project economics,' Fox said. 'If we do that, then we're up to almost a $1 billion worth of pre-tax NPV and an IRR of over 50%.'
