Labor urged to back tax on critical minerals exports

New Australian Workers Union leader Paul Farrow will lead a tax charge om raw critical minerals exports.

Australian Workers Union National Secretary Paul Farrow.

New Australian Workers Union leader Paul Farrow will pursue support for a new tax on raw critical minerals exports at this week’s ALP national conference.

In a proposed conference motion seen by The Australian, the AWU calls on Labor to recognise Australia’s unique advantage in having some of the world’s largest supplies of critical minerals.

Calling the minerals indispensable for the high-tech products integral to the renewable energy transition, the motion calls on Labor to take strategic actions to foster domestic refining, processing and component manufacturing.

The union wants Labor to back a tax on unprocessed mineral export resources and a production subsidy scheme to encourage downstream processing of Australia’s resources.

Mr Farrow on Sunday said Australia’s failure to convert the last mining boom into a boost to local manufacturing “hurt our sovereign capability”.

“The stakes are much higher this time. If we fail to convert the critical mineral boom into manufacturing capacity, it will hurt our national security.

“We have the world’s most enviable supply of lithium beneath our feet and our plan right now is to keep digging it up, selling it to China, and hoping it comes back affordably as the batteries and components we need. That’s not what a smart ­nation would do with such an amazing advantage.

“Is it smart to bet the house on our relationship with China not changing?

“Is it smart to believe multi­national mining companies when they tell us not to worry and to let them sell our raw resources without restriction?

“We urgently need a tax on the export of raw critical minerals, and we need to pump the revenue it raises directly back into subsidies for manufacturing and processing. We need to act now so terms are clear for ­tomorrow.”

According to the proposed conference motion, the AWU also wants Labor to recognise the contribution of Australia’s traditional mining industries – including copper, nickel, bauxite, alumina and zinc – to the clean energy transition,

It wants Labor to ensure approval processes reflect the economic opportunity in this industry and the urgency of tackling climate change, while continuing to engage communities, First Nations peoples and other stakeholders about the impacts of projects.