Press conference launching gallium project

MINISTER MADELEINE KING: Welcome and thanks so much for coming down here to Wagerup where we are doing the groundbreaking on what is a remarkable project between the US Government, the Government of Japan, the Government of Australia, as well as industry partners in Alcoa and Sojitz, to create a gallium plant right here in Western Australia – in Wagerup – which will secure the economic future of Australia, Japan and Australia. 

It is vital to our interest to have these critical mineral supply chains established and secure. I'm really happy to take questions and each of us are as well.

JOURNALIST: So, exactly how much taxpayer money is going towards financing the Wagerup gallium plant?

MINISTER MADELEINE KING: The Wagerup Gallium plant has involvement from three governments. The Government of Japan, the United States Government, also the Australian Government. 

Export Finance Australia has committed nearly $70 million into this project but is also part of the Critical Minerals Strategic Reserve, the second such project to reach FID – final investment decision – under the strategic reserve. 

That figure is yet to be established as we work off the agreements.

JOURNALIST: Okay. Why does a company the size of Alcoa need taxpayer support to make this viable?

MINISTER MADELEINE KING: Well, usually a product like Gallium, Australia would not have produced because it was freely available on the open international market. But that is now constrained. 

All of the supply, 98 per cent of the supply, virtually all the supply, comes from one country and that country has banned the export. So, now we have to make it. 

So, what that means is that governments work together with corporations to make that happen, because if we don't we then make it impossible to make many of the things that we need for our future. 

It will become more economic as time goes on and the supply goes up. But right now, it is the moment to ensure we have a future made in Australia, and therefore governments have to participate in that.

JOURNALIST: How much of the 100 tonnes of gallium being produced each year will be available for Australia's supply chains?

MINISTER MADELEINE KING: Well, it all works together here. What usually happens as Australia does the refining, that refined product goes either to our own supply chains and what we make, but for the products involving gallium, by and large, they are made in Japan and also in Korea, and the United States. 

And because we have open trade with those countries, it's a very standard process, and accepted process, that those refined products will go there, and we're getting them back in final products.

As we are working to make more things here, we expect that those gallium inputs are going to more products made in Australia.

JOURNALIST: So, what sort of benefits will this bring to the local communities here in the south-west?

MINISTER MADELEINE KING: For the South West, for Wagerup, and the towns around - jobs. Lots of jobs in the construction of this plant, but then ongoing operations. 

It sits alongside the modern Wagerup alumina refinery. So, what that means is longevity for the production of Alumina but also gallium in the southwest. 

So, that's ongoing prosperity for the shires of Waroona and Harvey and other places where workers drive in, drive out to this kind of location.

JOURNALIST: What's your position on the proposed purchase of South32 by Alcoa?

MINISTER MADELEINE KING: Oh, that is an excellent outcome. It shows how good an investment destination Australia is and that Alcoa is doubling down on its investment in Australia. 

So, it's a very important acquisition. It's got a bit of process to go through but really it just demonstrates that Australia is a number one investment destination for large companies like Alcoa.

JOURNALIST: Finally, some questions about exploration figures. ABS exploration figures for the current quarter are due out in the next week. Given the current boom, are you expecting another record quarter in terms of expenditure and metres drilled?

MINISTER MADELEINE KING: We'll wait to see what the figures show. But what we know is no government has put more into exploration in Australia than the Albanese Labor Government - $3.4 billion in the resourcing Australia's Prosperity program into Geoscience Australia means we are really finding out of what we're made of in this country. 

So, that produces pre-competitive data using existing data of geoscience, but also core libraries, and information like from the Geological Survey of Western Australia and others. That then goes out to industry and then they choose where they explore further. 

I am optimistic that the figures will be onward and upward, but we'll wait and see how they go.

JOURNALIST: The resources sector has voiced its concern that the current proposed changes to capital gains tax severely impact the exploration sector. What would you say to the sector that is already racing for impact?

MINISTER MADELEINE KING: I would say no government in Australia has ever done more for the resources sector than the Albanese Labor Government. In critical minerals alone, $28 billion worth of investment into this sector. 

I mentioned earlier about the Resourcing Australia's Prosperity program. That's a multi-generational investment in exploration in this country that has been welcomed from all quarters, as well it should be. So, I think exploration is in a very good space in Australia.

JOURNALIST: Is there anything you can do in terms of proposed carve-outs to prevent the impact of those changes to the sector?

MINISTER MADELEINE KING: Exploration in Australia is in a very good place. No government has invested more than the Albanese Labor Government in the exploration of Australia's underlying prosperity, which is the geology of our country, through the $3.4 billion investment in Geoscience Australia.

JOURNALIST: Just finally, if the proposed changes do go ahead, could this be the last quarter we do see increased exploration? What would that mean for Australia's future bottom line?

MINISTER MADELEINE KING: Exploration in Australia is at a remarkable point. We are finding out more of what we made of right across this country. Opening up new areas for that pre-competitive data exploration. This government has invested $3.4 billion into exploration. Mining companies have welcomed that. Exploration companies have most definitely welcomed that. No doubt they'll continue to.

JOURNALIST: Minister, the Secret Harbour election’s coming up. You spent some time there, and it's the Prime Minister versus Pauline Hanson seems to be overshadowing this by-election. Do you think a loss for Labor will be a warning sign for the Albanese government?

MINISTER MADELEINE KING: Oh, I think as voters make their choice, they're making their choices now pre-poll, but then we've got the election itself, the vote this Saturday.

They’d do well to concentrate on the local candidates. Georgia Tree, the candidate for Secret Harbour, Labor's candidate, is by far the most well-qualified person to represent that community.

She's worked in that community alongside me for nine years. She grew up there. No one has spent more time than her in that community that the voters get to choose from this Saturday. 

So, while the media can paint it as a picture between others, really for voters on the day, as is always, they go into that ballot box to vote for the people on that ballot. And so, I urge the voters of Secret Harbour to have a good think about their vote – and they always do, voters are smart, and I look forward to their support for Georgia Tree.

JOURNALIST: And on the GST, are you satisfied with the answers you've heard so far from the Prime Minister in the GST?

MINISTER MADELEINE KING: I very much am satisfied. The Prime Minister has been solid, as always, on his commitment to Western Australia. I believe it's his 45th visit to WA. No Prime Minister has visited WA more than Anthony Albanese. He has committed to not changing WA’s GST share. What more do we need to say? That's solid, that's a promise, and that's really important, and it's great for the state. Okay, thanks, everybody. Thank you.