Defence warns Australia is vulnerable to China on critical minerals

West Australian

2 days ago

A senior military officer has warned Australia's defence is vulnerable to China's monopoly on critical minerals and that resources exports out of WA could be stopped if tensions boil over into conflict in our region.
Major General Jason Walk, head of Defence's national support division, warned government and resource sector representatives that civilian and military cooperation had to overcome serious deficiencies and vulnerabilities to ensure Australia could cope with any conflict.
Defence is making preparations akin to those leading up to and during World War II in response to increasing competition between the US and China in the Indo-Pacific, although there isn't any inevitable pathway to conflict.
But there was 'no dedicated bag of gold' for the work, which would take innovative thinking and closer coordination to make it happen, Major General Walk told the Pilbara Summit on Thursday.
His warning comes after Chief of the Defence Force David Johnston said
Australia needed to start preparing for homeland combat operations
.
Major General Walk recalled that in the years before WWII broke out, the government established a small economic cabinet to deal with wartime economic policy, working alongside the war cabinet, on efforts such as reducing dependence on overseas imports by encouraging domestic production of essential goods.
Similar work is happening now.
Australia's local supply of critical minerals gave it a strong strategic advantage, but it was vulnerable because it lacked capacity to do much more than dig them up, Major General Walk said.
'China's dominance over critical material supply chains leaves us exposed to any actions taken by them to restrict access,' he said, citing antimony as an example.
'Defence has a range of capabilities that require this mineral. Antimony is mined here in Australia, but is then exported to be refined and brought back to Australia to be manufactured into products in which we are global leaders.'
Dealing with these gaps in supply chains would reduce strategic dependencies but also give opportunities for growth and geopolitical leverage.
He backed the Department of Industry, Science and Resources' work
on a critical minerals strategic reserve
and government investment in processing facilities.
Defence is already involved in a whole-of-government effort to secure critical minerals supply chains.
It's also looking at ports and airports across the Pilbara and thinking about how to mobilise the workforce that will be required.
'Crisis through geostrategic tension or conflict may be disruptive and include, for example, a pause to mining exports,' Major General Walk warned.
On top of this, there are 'severe risks, deficiencies and vulnerabilities that would prevent, hinder or seriously affect Defence's capacity and capability to build a defence presence in this (Pilbara) region'.
Major General Walk issued a call to industry to start looking at where it could support national security efforts or how it might be able to lend expertise or pivot operations during a crisis.
He cited the distillers who switched to making hand sanitiser during COVID, and the initiatives of BHP head Essington Lewis during WWII to stockpile materials for munitions and speed up plane-building.
'What is the hand sanitiser equivalent of the mining sector?' he asked, suggesting Defence could call on mines across northern WA to convert diesel storage into jet fuel storage.
'In describing this work and proposing there is further opportunity for collaboration, I wish to emphasise this does not come without challenge.
'There has been no dedicated bag of gold assigned to this work. It therefore demands innovation to explore where opportunity resides.'