Updating Australia’s Critical Minerals List: issues paper

108 St Georges Terrace T +61 8 9324 9000 south32.net
Perth WA 6000 Australia F +61 8 9324 9200

24 August 2023

By email – CMOconsultation@industry.gov.au

South32 Limited (South32) is a globally diversified mining and metals company. We produce commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal and manganese from our operations in Australia, southern Africa and
South America.

Our commodities are used in all aspects of modern life and we are actively repositioning our portfolio to increase our exposure to the commodities critical to a low-carbon future. Key market sectors where our commodities have an important role to play include construction, energy and renewables, the automotive industry and consumer goods.

Information on our approach to sustainability can be found in our Sustainable Development
Report at www.south32.net.

South32 welcomes the opportunity to make a submission to the Australian Government’s
Critical Minerals List Issues paper (Paper) released on 27 July 2023, following release of the
Critical Minerals Strategy in June 2023.

The Paper notes that Australia’s Critical Minerals List signals the importance of the listed minerals to our economy and our national security and the current criteria for inclusion as:

• essential to modern technologies, economies and national security
• whose supply chains are vulnerable to disruption
• our strategic partners need
• for which Australia has potential economic geological resource

The criteria, and the reasons for them, are noted and remain broadly applicable. The relative importance of each criteria may vary for different minerals, depending on global, strategic, technological, economic and policy inputs, so flexibility on application is important to enable the list to respond to domestic and international settings. We reference the Minerals Council of Australia submission to this process for a detailed consideration of these issues.

In considering the current list and potential additions to it, we reference commentary in submissions by the Minerals Council of Australia and the Australian Aluminium Council in supporting the addition of the aluminium value chain (bauxite, alumina, aluminium) and zinc.
We support retention of manganese on the list.

Aluminium value chain (bauxite, alumina, aluminium)
Aluminium is often referred to as the metal of the future. It is lightweight, durable, strong, resistant to corrosion, recyclable, and it can conduct electricity, meaning it has a wide range of applications including construction, electrical wiring, transportation, packaging and consumer goods such as electronics and household items.

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We highlight the position articulated in the Australian Aluminium Council’s submission:

“While bauxite, alumina and aluminium have been recognised in the past as being
essential to the national economy, national security and modern technologies;
Australia’s status as a major global producer has hidden the supply chain
vulnerabilities, which have been building for the last two decades, but which have
been increasingly exposed since February 2022. The Council believes that Australia’s
aluminium value chain (bauxite, alumina and aluminium), as well as HPA, should be
considered as Critical Minerals in order to capitalise on its wealth of resources and
make Australia a supplier of choice, underpinning both domestic and regional security
in the transition to net zero. “

Zinc
Zinc protects metals against corrosion and will play a key role in green infrastructure development as a protective coating for wind turbines and solar panels.

Manganese
Manganese is used to improve the quality and strength of steel in major infrastructure such as hospitals, office towers and bridges. Manganese also has the potential to displace cobalt in lithium-ion batteries, with demand for manganese-rich cathode chemistries expected to grow.

Thank you for the opportunity to contribute to this consultation paper. We would be happy to provide further information as appropriate.

Regards

Michael Cutler
Group Manager, Government Relations and Public Policy