Strategic Insights Update

Australia and the European Union have signed a memorandum of understanding (“MOU”) to improve collaboration on critical minerals projects. The MOU will be followed by the joint development of “concrete actions” over the next six months and builds on the EU’s Critical Raw Materials Act, which aims to diversify critical mineral supply chains. Queensland stands to benefit greatly from this partnership given its access to critical minerals. The thriving mining and resources sector allows utilisation of existing large know resources (e.g. Vanadium) and opportunities to extract other minerals as processing biproducts.

Agriculture Victoria has confirmed that two different strains of avian influenza (bird flu) have been detected at two Victorian egg farms - the first cases detected in Australia since 2020. Countries have already begun restricting Australian poultry exports. While there are no confirmed cases in Queensland, some Queensland shipments have already been impacted. Last financial year, Queensland exported $42.4m in poultry related products.

International company Quinbrook Infrastructure Partners has revealed plans for a green iron facility in Gladstone. Green iron is made with renewable energy sources that don't release carbon dioxide, instead releasing water. Industrial decarbonisation lead within CSIRO's Towards Net Zero mission, Warren Flentje, said this project would be world-leading and one of the first of its kind in Queensland. The final product can then be exported as pellets to steel mills across the globe.

Australian wine producers have welcomed surging demand for premium wine in India following a cut in import tariffs. Australian wines now represent 46.5% of India’s imported wines. Federal Trade Minister Don Farrell says the India-Australia Interim Trade Agreement has facilitated ongoing negotiations with the aim to eliminate tariffs on Australian wines entirely. Changing Indian consumer choices and further tariff reductions could provide opportunities for Queensland beverage exporters.

A University of Michigan study has found that copper required for renewable energy infrastructure is beyond the rate at which it can be mined. Industry-funded research by S&P Global similarly found that annual copper demand is likely to reach 50 million metric tonnes by 2035. The surge in demand and constraints on new supply has already seen copper prices reach record highs. Australia has the second largest known copper reserves behind Chile, with Queensland well placed to supply the copper needed to deliver a net-zero global economy and is the state with the most mines.

Russia has launched a satellite reportedly capable of attacking other satellites in orbit. The militarisation of space represents both a risk and opportunity for Queensland’s space industry, which is expected to add $3.5 - $6 billion to the state economy by 2036. Many of Australia’s leading space companies, including Black Sky Aerospace, Gilmour Space Technologies, and Hypersonix Launch Systems are based in Queensland.

The national energy market operated has warned that NSW, Victoria and South Australia are at heightened risk of blackouts this summer, in part due to delays to a major clean energy project. Australian Energy Producers CEO Samantha McCulloch says the warning highlights the role gas will play in providing renewable backup (and) supporting that shift away from coal. This presents opportunities for Queensland’s LNG industry as well as companies in the bio-gas space.