Interview with Kieran Gilbert, News24

Website search Interviewer Kieran Gilbert Scandium mine in Dubbo, Chinese iron ore exports, and Australia's relationship with Japan. KIERAN GILBERT: Welcome back to the program. Joining me live in the studio is the Minister for Resources in Northern Australia, Madeleine King.

Thanks for your time. I want to bring our viewers attention to this investment, over $500 million by the Pentagon into a mine near Dubbo. What's going on there?

MINISTER MADELEINE KING: Yeah, well, it's a scandium mine run by Sunrise, and this is an initiative from the US government through the Department of War. Half a billion dollars invested into getting this project up and running. KIERAN GILBERT: And scandium is used for?

MINISTER MADELEINE KING: Scandium, like a lot of these critical minerals are different and rare earths are part of the elements we use in modern technology, whether that be in, you know, your laptops and so forth. But for scandium, it's high-resistance alloys, so it's used in a lot of defence systems as well as technology like laptops and so forth. So, it's a precious thing, then, it's a great deposit.

And congratulations to Sunrise for the work they have done to get it to this point. There's a couple of good prospects in Dubbo, as it happens. There's this one, the Scandium mine, but also Australian Strategic Materials, which has got a rare earth deposit.

And both of these things have captured the attention of the US government. And this is exactly the kind of investment Australia wants in our critical minerals industry. KIERAN GILBERT: Because it's got an economic benefit.

It's got a strategic benefit too, because up until now it's been a monopoly held by China and the US not very keen on that. MINISTER MADELEINE KING: Well, and no-one is. I think when there's a monopoly on any particular product, we find ourselves vulnerable.

So, this government's determined to get a critical minerals resource sector up and running into processing as well, just to offer that competition to China's provision of these minerals and then that then provides alternative supply chains for our partners. And then the Americans are very much on board of that. And you would know.

I was with the Prime Minister, we met President Trump and with Minister Ayres as well, where we spoke about these, number of projects in the US-Australia critical minerals framework. A really important and significant moment in our relationship with the United States. KIERAN GILBERT: On iron ore, there's a fair bit of talk around at the moment as to whether our iron ore miners can collaborate.

It's been described almost like the old Australian Wheat Board did with wheat exports, that our iron ore miners might do that to deal with what is effectively the Chinese doing the same thing with their steel makers. They're negotiating as one. Would you support our iron ore makers collaborating and, you know, encourage them to do that?

MINISTER MADELEINE KING: Well, these are interesting developments in the iron ore industry that have emerged over the last couple of years, and we've seen BHP have some challenging negotiations with their purchasers in China. And China, has formed what's called the China Mineral Resources Group to seek to use their purchasing power to influence pricing of iron ore.

So, for Australia, what that means is because iron ore is so important to our economy, so important to our budget, so, that means, you know, that the hospitals we have and the roads and so forth, the schools all around the country, when prices change, government's ability to fund those things changes as well. And that's why that part of the resources sector is so important.

So, we will monitor this situation. Of course, we would as a government and I meet regularly with all of the iron ore producers. KIERAN GILBERT: But you're open to that.

MINISTER MADELEINE KING: Look, I think we just need to monitor it. We don't want to get ahead of ourselves on anything like this. It's important that commercial decisions and commercial pathways are pursued.

You know, we believe in an open trading system, so we want to see that work first. But, you know, we, we keep a watchful eye. KIERAN GILBERT: I know you've spoken to me many times about the importance of the Japan relationship.

I want to conclude by asking you about that issue because there's been a bit of a hoo-ha over that podcast the Prime Minister did. I had the former ambassador Yamagami on. He says it was crass, sexist, but he didn't say that he should apologise.

He says it's a matter for the PM. Michaelia Cash, Monique Ryan, others saying the Prime Minister should apologise. What do you say?

MINISTER MADELEINE KING: What I would say is that the Australia-Japan relationship is - has never been in a better place. Like this is two countries that made a conscious decision to not let a challenging past dictate what will be and indeed is right now a very successful shared future. We work together on all number of things.

The Mogami class frigates, a $10 billion investment in that. Mitsui has invested $8 billion into our iron ore industry just, a year before last. We work together on critical minerals with the Alcoa Gallium project.

There are countless ways in which we work together all the time. The CPTPP, the Trans-Pacific Partnership, was another - KIERAN GILBERT: Should the Prime Minister be more careful then, in his language, with a country that obviously does, you know, value face and keeping face quite a lot. MINISTER MADELEINE KING: By all reports, from what we have heard from the Japanese side of this is there has been a sensationalised reporting of something that, as the Prime Minister has been very clear about, has been mischaracterised.

But the most important thing is how very important and how very successful this relationship is and will continue to be. And I, like a million other Australians, will go and visit Japan as a tourist because it's a great place to go and we love having them come here as well. KIERAN GILBERT: It sure is.

And Yamagami says that the PM should visit this year, make the time in his schedule and get up there and - MINISTER MADELEINE KING: And, you know, summit season's coming up. The Prime Minister, quite rightly, has a lot of travel to do to the G20 and so forth, so - KIERAN GILBERT: He might well see the Japanese leader there. MINISTER MADELEINE KING: Oh, undoubtedly.

Undoubtedly. Yeah. So, they're a principal partner in the Indo-Pacific.

KIERAN GILBERT: Madeleine King, thanks for making the time today. We appreciate it. As always.

MINISTER MADELEINE KING: A pleasure, thanks, Kieran. The Department of Industry, Science and Resources recognises the First Peoples of this Nation and their ongoing cultural and spiritual connections to the lands, waters, seas, skies, and communities. We Acknowledge First Nations Peoples as the Traditional Custodians and Lore Keepers of the oldest living culture and pay respects to their Elders past and present.

We extend that respect to all First Nations Peoples. Stay informed of the latest ministry list on the Department of the Prime Minister and Cabinet website This website is managed by the Department of Industry, Science and Resources