NADIA MITSOPOULOS: Now, I spoke to Madeleine King, the Federal Resources Minister, this morning, and, in fact, that was straight after the Prime Minister’s media conference. And she shared Anthony Albanese’s optimism that an exemption deal could be reached. 

MINISTER MADELEINE KING: I think it’s really very positive for the aluminium and steel industries, and also, of course, for Australia’s relationship with the Prime Minister. So, the Prime Minister made it very clear in his press conference earlier this morning about his phone call with President Trump, that, by all accounts, it was a very productive and warm conversation and a confirmation from the Prime Minister and the President that exemptions for the tariffs were – are under consideration. So that’s really important. The truth of the matter is we’ve been working with the US administration, the former administration, this current administration, and making sure we have those relationships in place. We’re a government that gets things done, and Prime Minister Albanese is, as always, working in the best interests of Australians. And, of course, this is really important to Western Australians given our participation in that supply chain as well. 

NADIA MITSOPOULOS: Minister, what is at stake if a tariff was imposed? 

MINISTER MADELEINE KING: Well, tariffs are not – are far from helpful for a country like Australia that depends on trade. It took a lot of effort in the ‘80s to raise the tariff wall. The truth is, when tariffs are imposed, the people that pay the most are consumers, so American consumers will pay more as tariffs come in on certain products, and that’s no good for them and it’s no good for the producers here. So, we’ll just keep working away at this. There’s, you know, no point trying to guess too much as to what would happen. Obviously, we have to anticipate all outcomes, but I’m really positive. I think it’s a really positive sign that this conversation was as productive as it was, and I think, you know, for Western Australians in particular, we can be really assured that top of the list – top of the list – from that phone call was the Prime Minister’s engagement with the President on Western Australia’s critical minerals. And that really is something that we can work together on – our government and the Trump administration together. 

NADIA MITSOPOULOS: It does create an atmosphere of uncertainty for investors, for the business community, and there’d be people wondering, okay, well, what’s next, what else, what other tariffs could be coming? I mean, how do you shield our liability in that area? 

MINISTER MADELEINE KING: Well, we just have to keep working at it, and I’m not going to pretend that we don’t want more clarity. Of course we would like more clarity on these things and where they might affect us. But we just have to keep working at the exemptions we’re talking about and keep in close contact with our friends in the US. We’re a country that relies on trade. It has been the basis of our prosperity. And our record with the United States, you know, is pretty exceptional in terms of trade. You know, we buy more of America’s products than they buy of ours. So that’s to their advantage. And we also – Australian investment into the US is extraordinary. We have trillions of dollars invested in the US, and likewise they invest into this country. So it’s a really mutually advantageous relationship, and of course, there’s the all‑important relationship with AUKUS, which, as you know, is very important to my hometown in Rockingham. And it’s important to the future of jobs and prosperity of Western Australians as well, particularly young Western Australians. There’s a lot to talk about that we have in common with the US and that we’ve built together over the years, and I’m pretty confident we’ll be able to, you know, work really well with them and get through these kind of discussions on tariffs. 

NADIA MITSOPOULOS: Because, I guess, for us here in WA it’s about the iron ore for us and bauxite. 

MINISTER MADELEINE KING: Yes, iron ore. You know, clearly tariffs on steel in other countries has knock-on effects to iron ore in this country. The growth in China is slowing but it’s still, you know, in positive territory, which is really positive for iron ore miners. You know, this country is built off the back of the resources companies around the country, whether that be in coal, iron ore or gas, and it creates many, many thousands of jobs and the national prosperity of the country rides on the back of iron ore and gas in Western Australia. So, it is really important we are eagle-eye focused on how we make sure that prosperity continues through support for that resources sector. And, you know, I meet with iron ore companies – Rio Tinto and BHP and others – you know, frequently. So, we’ll continue to work together with them and with our American friends as well. 

NADIA MITSOPOULOS: My guest this morning is Madeleine King the Federal Resources Minister. Well, let’s look at the Future Made in Australia bill. What will those production tax credits actually do? Can you just explain that? 

MINISTER MADELEINE KING: Yeah, well, the production tax credits is an extraordinarily significant policy, revolution, you might say, that will provide tax incentives to do more processing of critical minerals and rare earths right here in Australia. So, it’s about incentivising companies to bring on more investment to push into that processing world, which means better jobs for more Australians, and it’s right across the country. I mean, there’s no doubt most of the critical minerals in this country are located in WA and Queensland, but also there are centres like Alice Springs and also in Dubbo and other places that also have rare earths. So, we want to encourage that right across the country, but in particular Western Australia. So last night the Senate passed a $17 billion package to supercharge this industry, an industry subject to extraordinary international market pressures. And what we saw – and I’m not happy about this but, you know, this is what their choice was – the Liberals and the Nationals voted against it. So, the WA Liberals – and I want to be clear that your listeners understand this – the WA Liberals voted against the single biggest government investment in the resources sector. That’s what happened last night, and they’ll make all sorts of excuses for why they don’t support this emerging and really important resources story for Western Australia – the truth is they just don’t support the WA resources sector. An industry-led policy, we worked for 18 months with industry to come up with this policy. It is thorough, it is fair, it’s the right thing to do for our national prosperity, our national security, our sovereign capacity in mineral processing. But Peter Dutton and the WA Liberals just left the field. 

NADIA MITSOPOULOS: But isn’t Peter Dutton’s point that not everybody needs government assistance here, that you might be giving billions of dollars to billionaires? 

MINISTER MADELEINE KING: Yeah, that’s another one of Peter Dutton’s three-word slogans on this, but the truth is these critical minerals industries are under extraordinary international market pressure. We have a situation where the dominant player has been investing in this industry for 20 or 30 years and most of the minerals comes from Australia. So, it really is our time to step up and take on our responsibility to lead globally on critical minerals and rare earths. And just like every other part of the resources sector, when they started – iron ore, gas, coal – all needed government participation and cooperation in developing the industry. Sure, they’re fine on their own now, but in the ‘70s and the ‘80s, that’s what was necessary. And now in the 2020s we need to step up and take on the responsibility to make sure we do create a critical minerals processing industry in this country, and to deride the wealth makers in this country like Peter Dutton does is absolutely staggering. And, to be frank, I’m surprised some of them still support him the way he talks down their participation in the critical minerals industry. I think it’s a disgrace. 

NADIA MITSOPOULOS: So, what are the opportunities, Minister, that this bill will present? 

MINISTER MADELEINE KING: Well, there’s a number of projects. And a lot of them are – you know, they’re at their outset and they’re coming to final investment decisions. And, you know, I’ve spoken to a lot of industry as well as the representative groups, whether that be in a number of projects around WA but also, like, Alice Springs and in New South Wales. It makes that final investment decision a kind of no-brainer because they know they’ve got government support, government wants this industry to work, government is willing to invest through a tax incentive. A policy that only pays on success, and success is more jobs and better jobs and well-paid jobs, and success is also bringing in the private capital to make this happen. Obviously, government can’t make its own critical minerals industry. I mean, Peter Dutton wants to make his own nuclear industry and have that built and paid for by government. What we want to do is have private investment in the critical minerals industry supported by government, incentivised by government, to make sure we have a longstanding secure supply chain for critical minerals, which we need in everyday things, like your phone, the radio people are listening to you in your car or at home, your laptop, your solar panels, but also, you know, things needed for our national defence. So, you know, critical minerals touch all parts of our lives, as do rare earths. So, to ignore the need for it, the international market pressures is, frankly, ignorant and stupid on behalf of the Liberals, and particularly WA Liberals, who I would have expected more of. 

NADIA MITSOPOULOS: And finally, Minister, when does it start? 

MINISTER MADELEINE KING: It will – well, obviously legislation has gone through, and the first credits will be expected to start in a couple of years. 

NADIA MITSOPOULOS: Why a couple of years? 

MINISTER MADELEINE KING: We’ve had a lot of talks with the industry and that’s what we believe in consultation with them is the sweet spot. I mean, there are people, some would like it earlier, and I understand that. It’s a big change to the taxation system. We haven’t had a production tax credit in the resources sector in this fashion before, so we need to make sure it works well. But, you know, we have spoken with industry. It’s been a long consultation process and a really productive one. And 2027 is the sweet spot around final investment decisions and that all-important incentive work. 

NADIA MITSOPOULOS: That was Madeleine King, the Federal Resources Minister.