Former federal treasurer Joe Hockey is confident US President Donald Trump wants a critical minerals deal with Australia for supply of minerals needed for his nation’s defence industry.
Former federal treasurer Joe Hockey is confident US President Donald Trump wants to pen a critical minerals deal with Australia to guarantee supply of minerals needed for his nation’s $450-billion defence industry.
Speaking at the Resources Technology Showcase on Tuesday, Mr Hockey said Australia’s resources industry could make itself “hugely important” to western military supply chains.
Mr Hockey served as ambassador to the US during Mr Trump’s first term and established national security advisory service and investment fund Bondi Partners.
A deal between Australia and the US would, according to Mr Hockey, underpin the supply of the two tonnes of critical minerals needed for every Virginia class submarine, and 500kgs of the minerals needed for F35 fighter jets.
Most of those critical minerals and rare earths are currently processed in China.
“There is a deal to be done with President Trump. I know this on critical minerals and rare earths,” Mr Hockey said.
“He wants Australia to be party to that.
“We have a number of legislative advantages in Washington DC that put us to the top of the list.
“It is about providing guarantees to the national security and industrial military complex in the United States of those critical minerals and rare earths.”
Mr Hockey said processing was “agony” in the United States, which gave Australia an advantage if “patient capital” could be attracted to a domestic downstream processing industry for critical minerals and rare earths.
That industry would also benefit from European demand, he said.
Mr Hockey also touched on a potential peace deal between Ukraine and Russia, which could include the annexing of the illegally occupied Donbas region by Russia, and a US security guarantee for Ukraine.
“The Donbas region is 30 to 40 per cent of the critical minerals, rare earths, and basically resources of Ukraine,” Mr Hockey said.
“I would be surprised if Russia doesn't end up getting that region, which makes Australia's supply chain even more important.”
Of some concern to Australia defence interests in recent months has been a review into the $360-billion AUKUS defence pact announced by Mr Trump in June.
Mr Hockey said that review was unlikely to result in the unravelling of AUKUS.
“The fundamental point is, AUKUS serves the purpose of the US, UK and Australia,” he said.
“It is the infrastructure and support and maintenance that is going to make the difference.
“They are going to have to spend $20 billion building out Henderson to maintain and support the nuclear subs here in Western Australia.
“The technology and resources and innovation that goes into those bases is going to be an entire new industry here in Western Australia.”
Mr Hockey served as treasurer from 2013 to 2015 under former Prime Minister Tony Abbott.
