Interview on 2HD with Richard King

HOST: The Senator Tim Ayres who's the Minister for Industry and Innovation and also our Minister for Science, on the subject of the Albanese and Minns Labor Governments and also Muswellbrook and Lake Macquarie councils working together to secure the future of the Hunter. New plans set to unlock more than 7,000 jobs. This is as part of the region's shift from coal into a major industrial hub. And with more on that the Minister joins me now. Good morning, Tim. 

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE:  Oh g'day. It's really good to be on the show Richard.

HOST: Yeah, likewise a chilling morning down here. Now look, there's been a lot of talk. I've spoken to Jeff Drayton recently, the Mayor of Muswellbrook and also Sue Moore, the mayor of Singleton about transitioning from away from coal and what's going to happen, you know, creation of jobs. So, and I believe you announced this plan, was it in, I think it was late last year Tim, the re the Muswellbrook and the Lake Macquarie mines that you're going to be talking about today?

AYRES: Yeah, we announced this in the lead up to the last election. I mean there will be coal mining in the Hunter Valley for the foreseeable future but mines do close. You know the Mt Arthur mine is scheduled to close in 2030. That's a function of the geotechnical issues around the mine and global markets. Mines have opened and closed across the Hunter Valley for the last 150 years. The key issue is the opportunity here, is that rehabilitation requirements have traditionally required that the mine be returned 100% to its previous state. These land reuse deals that are Lake Macquarie Muswellbrook Council, the NSW Government, the Albanese Government all working together to secure the existing capabilities here to turn into industrial reuse. So, we can have industrial reinvestment factories and facilities put on these mine sites where there's usually really good power access, really good engineering facilities, road and rail access like these are assets for the Hunter Valley in economic terms and we're determined to make sure they're not just knocked down but are used to create good blue collar jobs in the region.

HOST: Right. Look I remember BHP used to own Mt Arthur and I know it was a few years ago they said re remediation, they said nah, it's too expensive, we can't do that. And I know isn't it par for the course over in the United States that they have to remediate mines but is it the case here in Australia Tim?

AYRES: Yes, it absolutely is the case and what can be achieved is both objectives. I mean that absolutely is a requirement, the state government oversees this to ensure that all of those environmental concerns are adequately remediated. But secondly there are opportunities here to build industrial parks that can sustain new jobs and new investment that saves a lot of cost. It means that we're all working together to secure industrial investment here. It's consistent with the Albanese Government's Future Made in Australia plan. We want to see more industrial facilities, more new factories, more new workshops being built, creating good jobs here in the Hunter Valley. This is consistent with that. I'm really pleased to be part of delivering on this first phase in, in relation to West Wallsend and Mt Arthur.

HOST: Right, okay, so look, you know today this is, you're going to be repurposing and creating new jobs but is this just a thought bubble or there are actually plans in place to, to do something concrete or is it just. Look, we're hoping this is going to happen.

AYRES: Well the work's gone in here. We'll be inspecting the progress of the work today. These facilities are closing. This is, you know, as I said there will be coal exports going from the Hunter Valley for the foreseeable future for decades and decades to come.

HOST: Well it was only a new mine that officially opened last week so Ashton's closing within a couple of years but another one actually officially opened last week. So, yeah, it's certainly going to be around for a while.

AYRES: Yeah, that's right. This has always been the case in the coal industry. You know, old mines close, whether it's geotechnical issues or shifts in the global market or a shift in the strategy of the coal mining company and new mines open. The Hunter Valley's worked with that reality for decade after decade after decade. That's going to continue. We are in our own electricity system which is a small portion of the Hunter Valley's coal mining devoted to local electricity. We are modernising and rebuilding our electricity system so that it's the lowest cost, modern and fit for the future electricity capability. But largely the Hunter Valley and Central Queensland's coal is for export, and it will continue to function depending on what's happening in global markets. Where there's an opportunity to reuse one of these facilities to create good blue collar jobs, I want to make sure that the local community seizes it and that's why we've worked closely with the Minns Labor Government and with the two local councils who have been very active on these questions making sure I'm here in Muswellbrook today and overnight. Jeff Drayton, the mayor here has fought hard to make sure that his community is a beneficiary of new investment. Whether it's new data centres and storage, whether it's new factories and facilities and workshops. You know, this is a community that's fighting for industrial investment and this new industrial park plan is just one element of all of that work.

HOST: Right, ok. Well Mt Arthur, which I think is probably the biggest mine, isn't it? And it's set to close in 2030. Is there a concrete plan? Is there a plan, you know, for reusing? I mean it's a massive void. That Mt Arthur coal mine Tim Ayres.

AYRES: Well, that will all have to be dealt with by BHP in partnership with the NSW Government. The scale of the industrial park, you know, Mt Arthur is a massive mine.

HOST: Huge.

AYRES: Yeah, absolutely massive. Thousands of workers. It's a giant void that goes on as far as the eye can see. The industrial park is very small in comparison. Yeah, okay, they're very small. So, it doesn't, it doesn't replace the remediation objectives that are required by law.

HOST: I mean when we talk about remediating a mine site like Mt Arthur, I mean what, you can't return it to what it was, can you? I mean it still stays a void, doesn't it?

AYRES: Oh it certainly does. I mean I have family who were, you know, on little farms up in this, in this area and in little communities here. It's a dramatically different part of the world now after these big mining developments have come through, it's impossible to imagine it returning to its original state. But there are remediation requirements that make it usable land. This plan doesn't replace any of those obligations at all. That's not the objective. Not to let the miners off the hook for their remediation requirements that everybody in the Hunter Valley would expect that they provision for, it is about making sure that where there's good access to electricity, to road, to rail, that we secure these facilities for water, all of these things really important for industrial reuse, that we secure those facilities and then use that as a platform to deliver new investment, Future Made in Australia projects, you know, and there's a lot, there's a lot happening in the Hunter Valley. There's this announcement today, and the Minns Government made an announcement about $12 billion worth of train manufacturing coming to the valley.

HOST: Well, and that might possibly go to a former mine site too. A Glencore mine site in Lake Macquarie.

AYRES: That's exactly right. We have confirmation, both governments now, clearly pointed in the same direction on the future of the Tomago Aluminium facility, steelworks investment.

HOST: Is there an update?

AYRES: Just let me finish this list, Richard, for a second. Over $400 million into Orica's renewable hydrogen capability. As you indicated, the Maxwell Mines announcement, the announcement of Lockheed Martin's Air Power Precinct at Williamtown. There is a lot of. This is just the last week.

HOST: Sure, yeah.

AYRES: We are, as a government, as the Albanese Government, determined to work with state and local governments to drive momentum towards reindustrialisation. That's what's going to secure the future of good jobs in this region. And our plan, we are going to continue to work on it and continue to deliver on it in a practical way.

HOST: Right. And any progress with the NSW Government re their contribution to the Tomago rescue plan? Tim?

AYRES: Well, we're working very carefully with the NSW Government. It's a complex deal. It's a difficult undertaking.

HOST: Yeah.

AYRES: You know, it's not straightforward. That is repowering the Tomago Aluminium facility at the right price, bringing forward energy generation and transmission projects to deliver for this facility. It's a big undertaking. Really pleased with what Chris Minns, the Premier of NSW, had to say publicly about this, which was absolutely consistent with our private commercial negotiations with the NSW Government. We'll continue to do that work in a careful way because it's very important to both governments. It's very important to the Hunter Valley. I know everybody would like it to be fixed yesterday.

HOST: Yes.

AYRES: But this is a big piece of work. Important, you know, it's our largest and youngest aluminium facility. We've delivered this progress in Queensland in relation to the Boyne aluminium smelter. It can be done and it will be done.

HOST: Good, good, good.

AYRES: But we're going to keep doing the quiet work behind the scenes.

HOST: All right, Well, I appreciate your time this morning and yes, enjoy your time in Muswellbrook and. Yeah, appreciate your time.

AYRES: Cooler at the top of the valley, I can tell you, but it's great to be here.

HOST: Yeah, likewise. Thanks for your time. Tim Ayres, our Federal Minister for Industry and Innovation and Minister for Science on 2HD.