PATRICIA KARVELAS: For more on the Japanese Prime Minister's visit and what it means for our gas and our critical minerals, I spoke to the Resources Minister Madeleine King a short time ago.  Minister, welcome to the program.

MINISTER MADELEINE KING: Pleasure to be here, Patricia.

PATRICIA KARVELAS: You’ve signed a joint statement on critical minerals, economic co-operation and a joint statement on energy security.  Is there anything substantially new in these agreements, do they make our fuel supply more secure?

MINISTER MADELEINE KING: Well importantly these are a collection of agreements that reiterate the trusted relationship between Australia and Japan. Certainly on critical minerals it’s a step forward on how we work together in co-operation and information sharing on government vehicles such as the critical minerals strategic reserve and also Japan’s investment vehicles too.  So it’s really important for how I as a Resources Minister and the industry itself are progressing the development of a critical minerals and rare earths industry here in Australia to bring on that separate supply chain from the existing one, so that those supply chains are secure for not only our national benefit but also for the benefit of industries here but around the world.

PATRICIA KARVELAS:  So in 2022 there was already an agreement with Japan I understand in relation to critical minerals.  How does this bring it forward; what extra access will they get under this agreement?

MINISTER MADELEINE KING: Well, what it does is reflects the work we’ve done since that moment and the agreement you refer to in 2022 was the first agreement we signed or I signed as the Resources Minister but as the Albanese Labor government coming in to power. So it was really very important relationship to establish with the new government here in Australia and the government of Japan. And this agreement today cements that but adds to it as I said before around, it also lists a number of projects that we’re working together on.  But cementing how we will work together in future on the critical minerals strategic reserve which is a really novel facility and policy that the Australian government has developed to enable our government to invest in these projects through off take agreements to have a reserve of these critical minerals and rare earths but to enable other countries such as Japan to participate so that we share the capital risk so to speak.

PATRICIA KARVELAS: So both countries have also agreed to consult each other on economic security contingencies and consider measures to mitigate risks. Now, that sounds to me like for instance if we were to consider a gas tax we have to first consult Japan; am I right?

MINISTER MADELEINE KING: No. Each country has its own sovereignty over its taxation systems. Just as we wouldn’t seek to in any way interfere with Japan’s taxation regime they wouldn’t seek to interfere with ours. We have said consistently around, especially around energy security and supply – which links really strongly into investment both in those energy projects but equally with critical minerals like we were just speaking about – making sure we are trusted and reliable and that we are a no-surprises partner. And that’s really important for long-term relationships for long-term stability in our region and it’s something Japan respects, it’s something Australia respects.

PATRICIA KARVELAS: So you’re saying it doesn’t lock us in to not doing something, but it does, I mean I’ve looked at the language. This is about mitigating risk and consultation.  Now of course you can consult and still do something but it actually does lock us in to talking to them before we do anything.

MINISTER MADELEINE KING: Well Australia would always talk to our partners around significant changes.  We do right now as a matter of course.  But it’s certainly -

PATRICIA KARVELAS: This formalises it though doesn’t it?

MINISTER MADELEINE KING: It doesn’t. Having a collaborative approach and discussion with other countries in no way, in no way restricts what the Australian government does in the interests of its people. And I cite the domestic gas reservation that we’re working on right now, so this is a policy that not everyone that we supply gas to is entirely happy with but it’s an initiative of the Australian Government, the Anthony Albanese’s Labor Government to make sure Australians have enough gas at an affordable price for their homes, to back up renewables, to firm renewable power in to the future and also for our industrial manufacturing capacity. But we still pursue this, we just make sure there are no surprises with our partners.

PATRICIA KARVELAS: Okay, so it’s a no-surprise clause if you like.

MINISTER MADELEINE KING: I guess so.

PATRICIA KARVELAS: Okay. Let’s go with a no-surprise clause. but it does formalise the relationship’s consultative process. You mentioned gas reservation. Has that come up in today’s talks, will it come up?

MINISTER MADELEINE KING: Well, we speak with the embassy here and others as well.  I think of the republic of Korea and Singapore’s High Commission, around our policies because they are investors in these projects but also they’re purchasers of these commodities. So just like any business around the country would consult with their purchasers on a change the government does that too. And that’s just good relationships in so many ways.  So these agreements are really important so we consolidate basically the 50 years of friendship agreement that we already have and work together to build on it. And if these statements today cement that and make it more firm in Australia’s mind but also in the minds of the Japanese people well I think that’s a very good thing for both of our countries.

PATRICIA KARVELAS: China and Japan’s relationship is tenser than it has been for decades. Last year the Japanese Prime Minister said a Chinese invasion of Taiwan could constitute legal grounds for sending Japanese troops in to any conflict. Of course that upset China. Will getting closer to Japan hurt our relationship with China?

MINISTER MADELEINE KING: No. I think every country knows that other countries will have their separate relationships and this is one of those. China is a principal trading partner there’s no doubt about that, but we also disagree on some things. And everyone will be very well aware of the Australian government’s approach with China as we agree where we can and disagree where we must. Japan sits in a different position and that’s because it’s a democratic country and we share similar value. But the same thing can be said we always have to put our own national interest first. But we also need friends in the region and we have a really important friend in Japan. And Japan is one of the linchpins of north Asian security and we work together all the time to make sure that we can contribute as best as we can as an Australian nation to their energy security, because energy security in Japan and across Asia means peace and prosperity. And that is what’s really important and in the national interest of every single Australian.

PATRICIA KARVELAS: So in terms of the energy security and the current crisis does it bring forward any of those negotiations that were already going on in relation to our energy stocks?

MINISTER MADELEINE KING: Well, the agreement today has solidified the work that has been going on. And it’s a really important moment when the Prime Minister of Japan comes to Australia, comes to our national capital to meet with our Prime Minister but also members of the Australian cabinet. So it’s more than just bits of paper. These are really important people-to-people relationships and it builds on the work that Minister Wong and Minister Farrell, Minister Bowen and myself and of course the Prime Minister have all been doing to make sure we do have that really close relationship in energy. For us as a producer of LNG and coal for the energy security of Japan, but equally for Japan in to Australia in the way in which they’re able to help us secure liquid fuels in terms of diesel and jet fuel, et cetera. So these global connections are really important, they’re really important for Australians being able to have the things they need and equally Australia plays its part in that regional stage in providing the energy security as I said, prosperity and peace.

PATRICIA KARVELAS: Minister, the war in the Middle East is clearly going on and on and we’re at a bit of a standstill. There’s obviously consistent and continuing news, the US trying to open up the Strait or at least allowing for their blockade to see movement through Iran, says that’s a breaking of the ceasefire. Just in terms of the impact on Australia on your home state, how do you see the winter ahead? Is it going to be a long and potentially bleak and grim winter?

MINISTER MADELEINE KING: Well it’s never bleak and grim in Western Australia, Patricia.

PATRICIA KARVELAS: Maybe in terms of your internal feelings [overspeaking]

MINISTER MADELEINE KING: In all seriousness, the conflict we see in the Middle East, you know, it’s not fun, it’s horrible to watch. We all see the explosions and war is never easy to view and the consistent view of the Australian government is that this should de-escalate and it should stop.  The Strait of Hormuz does needs to be opened for not just Australia but for the rest of the world to have that freedom of navigation through one of the most important trading channels in the world. So we will persistently and consistently follow that path on seeking de-escalation. As for a grim winter, there are challenges ahead. There’s no doubt about it. But as you can see and as your viewers can see through the consistent, patient actions this government has taken through securing the various shipments of liquid fuels in to this country, as well as the really swift action my friend, Energy Minister Chris Bowen made in making sure export Finance Australia could use its powers to be able to secure those ship loads of fuel, that all adds up to me being very confident that we are able to secure the liquid fuels that Australia needs. And through other ministers as well, like Minister Farrell and Minister Julie Collins securing the urea and the phosphate we need to be able to have fertiliser for farmers across the country. I’m not saying there won’t be challenges in to coming months. But this government has put Australia in the best possible position to weather those challenges over the winter.

PATRICIA KARVELAS: Minister, thank you so much for joining us.

MINISTER MADELEINE KING: It’s a pleasure, Patricia.