New US and Australia critical minerals collaboration means government must address corruption risks
In response to the US and Australia statement on critical mineral collaboration, the Australian government must address the ESG and corruption risks that increased demand will result in, say NGO coalition Publish What You Pay.
The Australia and US statements outlines the cooperation on new ESG standards, a Critical Minerals working group, financing opportunities and engaging with firms along the critical minerals value chain.
This hunger for new minerals will bring in new players and lead to greater environmental, social and governance risks for companies, investors and communities.
Australia’s transparency regime for mining is far below international standards. Australia is yet to join 50 other countries in implementing the gold standard of domestic resource governance, the Extractive Industries Transparency Initiative (EITI). This means that important information on revenues, royalties, contracts, project ownership and licenses remains a secret. These corruption risks ultimately hurt communities and the industry’s social license.
Clancy Moore, National Director of Publish What You Pay Australia made the following statements:
“We welcome the US and Australian government’s plans to support critical minerals and develop strong ESG standards. The increase in demand will lead to significant corruption, environmental and social risks for communities.”
“Australia’s current transparency and anti-corruption laws just don’t cut the mustard. As a first step, the Australia government should revive Australia’s commitment to join the Extractive Industries Transparency Initiative (EITI), otherwise too many contracts, tax payments and deals will remain hidden.”
“Preventing corruption risks is an important part of developing Australia’s critical mineral sector. This will help ensure mining communities, particularly Traditional Owners benefit, share in the benefits of mining and have the final say on what happens on their land.”