ANTHONY ALBANESE, PRIME MINISTER: Thank you very much, and I’m joined today by Geraldine Slattery, the President of BHP in Australia; Kellie Parker, the Chief Executive of Rio Tinto; Dr Andrew Forrest, Executive Chairman of Fortescue; and Gerhard Veldsman, the CEO of Hancock Iron Ore. I think it says something about how significant the relationship is between the Australian businesses and Chinese businesses and in particular, the importance of Australian iron ore exports for steel production here in China, that there are four of the most senior businesspeople in Australia represented here. And we have had a very successful discussion today with Chinese steelmakers about decarbonisation of the steelmaking process. This is the first time that Australia’s iron ore leaders have met with China’s steel industry leaders with an Australian Prime Minister here in China. And the discussions will resonate here no doubt with the leadership of China that I have discussions with tomorrow, but also more broadly.
Our iron ore is a critical industry in Australia. It employs more than 60,000 workers directly. But of course, there are many hundreds of thousands of jobs that depend upon this sector in Australia. Australia is proudly the largest producer of iron ore in the world. We supply half of the world’s iron ore, and we’re responsible for more than half of China’s iron ore imports. We know that steel is the backbone of the modern economy, but we also know that we need to decarbonise these processes if we are going to successfully deal with the challenge of climate change, but also the opportunity that it represents. And one of the things that struck me today from the discussion with the Chinese steelmakers as well as the Australian iron ore exporters is the common interest which is there - common discussion about changing the nature of furnaces, decarbonisation, the use of hydrogen, the use of research as well, and collaboration between Australia and China.
The Pilbara in Western Australia is the engine room for the world’s iron ore, and we want that to remain the case for a very long period of time. We want Australian iron to be part of the solution when it comes to lowering emissions, and we understand that China wants that too, and that was reiterated today. These discussions were an important step forward between our two nations. We want to see a sustainable steel sector in China and globally, and we want to build a future that keeps Australian jobs and our economy strong. Australia and China each have major stakes in the decarbonisation efforts. This is important not just for our two countries, but because of the impact of decarbonisation that it will have as part of addressing climate change – this is important as part of the global effort. It is that significant.
My Government is very much committed to supporting industry-led efforts, and each of these four businesses today spoke about what they are doing domestically, what they are doing in partnership with their Chinese partners, and what they see as the way forward. We’re going to hear from each of the four leaders in order. We’ll hear from BHP, then Rio, then Fortescue, then Hancock. And we’re happy to take questions on these issues before I open up for more broad questions. So first, Geraldine.
GERALDINE SLATTERY, PRESIDENT OF BHP AUSTRALIA: Good morning. Today's and this week’s gathering is a testament to the significant and enduring relationship of the economic and shared trust relationship between Australia and China, and I commend the Prime Minister and the Chinese Government for coming together in this way. It also puts a spotlight on the iron ore sector and the significance of the economic relationship and to the future of the decarbonisation of steel for that sector. It speaks to the continued need for productivity, for resilience in the iron ore sector in Australia, and it speaks to the strength and the longevity and the future potential of the relationship between the Australian iron ore producers and our customers here in China in decarbonisation. I look forward to what the talks over the next couple of days will bring to us. Again, just reiterate the significance of the iron ore sector to Australia and to the relationship between Australia and China. Thank you.
KELLIE PARKER, CHIEF EXECUTIVE OF RIO TINTO: Thank you, and thank you to the Prime Minister for hosting this important conversation here in China. We've been exporting iron ore to China for over five decades, and whilst that’s brought economic prosperity to both countries, it’s deepened our relationship with mutual trust and collaboration and that's what we’re going to take forward with steel decarbonisation. We will create the future together of steel decarbonisation. And it takes research, it takes commitment, and it takes both countries and companies to be working together - so today's conversation was really important. As Geraldine said, our industry in Australia is very significant to Australia, but it’s also significant here and the know-how in China on steel decarbonisation is very powerful here and we need to continue to learn and work together.
DR ANDREW FORREST, EXECUTIVE CHAIRMAN OF FORTESCUE: Thank you, Prime Minister. I begin my comments by thanking the Prime Minister and then, as you would do, say to a very busy man – we need this solved. If you want a job done, give it to a busy man. So I asked our Prime Minister if he could work together with China to form a bilateral agreement where we escape the threats coming from AI to employment, both in China and Australia, and generate a serious jobs boom. Both China for green steel, and particularly for Australia in green iron. We forecast hundreds of thousands of new jobs plus multiplier effects. Across China, we have people – they want a peaceful, long-term relationship with Australia. Across Australia, we have people who want a peaceful, long-term relationship with China. The Prime Minister has brought us into the realm of that peaceful long-term relationship, invaluable to the economies of both countries and invaluable to the growth and employment in both countries. This is people to people, and nowhere is it more important than people's children. Going hard into green steel, the biggest single industrial leader in the world, and hard into green iron ore – chasing that tail – is incredibly important for all peoples, all peoples' children and, most of all, for the employment drive and for the people of Australia and China. Thank you.
GERHARD VELDSMAN, CHIEF EXECUTIVE OF HANCOCK IRON ORE: Thanks, Prime Minister. Today was really a fantastic step forward, and I want to thank the Prime Minister for getting us all together to actually have discussions, not just amongst industries in Australia, but across with industries in China as well. Hancock Iron’s the smaller one of the majors, but we're very proud to able to work together with our Chinese customers and our other Asian customers over the last ten years. This major challenge is facing us but the one thing we all agree on, steel is really important for the world. And if we want to continue to lift living standards in the world, we need to continue to provide-cost effective steel. Working together, Australia and China, we can do that, no matter what the challenges are. Mining is very important for Australia. Western Australia got the vast majority of iron ore resources. We need to find a way that continues to be part of the future, because we know in Australia, when mining does well and so iron ore, Australia does as well. So Prime Minister, thanks again for the opportunity to take part in today and together, collaborating with our Chinese customers, we can solve all of these challenges.
PRIME MINISTER: Thanks very much, Gerhard. We’re happy to take questions.
JOURNALIST: Prime Minister, on the strong business relationships and building on those, do you see that also as critical to securing peace and stability in the region and also working through any differences that Australia and China might have on AUKUS or other things?
PRIME MINISTER: It certainly is. One of the things that’s important to recognise is that the economic relationship is obviously based upon a stable and secure region. We've seen the disruption that occurs when there is conflict in the world. That's why we need to make sure that we do everything we can to promote peace and security in the region. These businesses also, their engagement - at the end of the day, people to people relations are so important. And the relationship that these businesspeople have with their Chinese counterparts, I’ve just seen firsthand - the producers, with customers, producing value and jobs in both countries is very important for Australia.
JOURNALIST: Prime Minister, Chinese direct investment has fallen enormously in Australia over the last ten years and there’s a perception in China that Australia no longer welcomes Chinese money. Given the capital needed to develop the new industries you’ve spoken of today, whether that's decarbonising the iron ore process or even pushing deeper into rare earth, what is your message to Chinese investors? And is the Government doing anything to further encourage Chinese capital to land in Australia?
PRIME MINISTER: Well, we of course as a country depend upon foreign capital and we welcome investment. We have our regulatory mechanisms through FIRB and they're important to recognise our national interest. It’s not surprising though, given the nature of the investment that occurred, that there would not be a continuous uplift in that. We had, through COVID and through a range of periods, we had a global downturn in general and that had an impact as well. But we are a country that run an open economy. We, of course, look after our national interest and we consider any investment proposals on a case-by-case with those mechanisms.
JOURNALIST: PM, what will you be telling Xi Jinping tomorrow about your government's promise to force the sale of the Port of Darwin?
PRIME MINISTER: I will be – if it’s raised, our position is very clear. I'm sure the President is very clear and is knowledgeable of that.
JOURNALIST: Prime Minister, what will you be telling President Xi tomorrow about the –
PRIME MINISTER: I might leave the comments to President Xi, just to pre-empt a bit. I will have a discussion with the President. I will treat him with the respect that I would any leader of another country and not foreshadow everything the day in advance.
JOURNALIST: Understood. But what is your message of about the circumnavigation of Australia by the Chinese flotilla, live-fire drills and suspected surveillance ships now watching Talisman Sabre. Is this the act of a friend?
PRIME MINISTER: Well, with regard to the second question, that would be nothing unusual. That has happened in the past, and I will continue to assert Australia's national interest, as I do.
JOURNALIST: Thanks, Prime Minister. And just to go back to what you were saying before about stability with China. Xi Jinping, President Xi, seems to be positioning China as a more stable alternative. Is that an assessment you share? That’s an alternative to the US, to clarify.
PRIME MINISTER: Look, I don't draw alternatives. What I want to see is a stable and secure region. I think that is in the interests of everyone in the Indo-Pacific. But that's an approach I take to global politics as well.
JOURNALIST: Prime Minister, in your view, do you think the conversation around our trading relationship should be entirely separate to the conversation around China's human rights and security record? And if I could, could I ask Mr Forrest a question after you, Prime Minister. Mr Forrest, do you think the debate around security that emphasises China's risk is detrimental to the economic relationship and our prosperity?
PRIME MINISTER: Well on the first, what I say is that we will cooperate wherever we can – including, we obviously have an interest in trade. We’ll disagree where we must.
JOURNALIST: Does one affect the other?
PRIME MINISTER: We'll disagree where we must and put forward our position clearly where we have disagreements. We do that in a way that is consistent with the appropriate way to engage internationally. So, we do that clearly, unequivocally, each and every time, and this is a relationship, though, that is very important for Australia. Andrew?
DR FORREST: Look, Australia has a multilayered relationship, as it must, with China. And to really build up the strength of the bilateral relationship, you need those strong friendships, that very real element of business trust between each other - and that is what the iron ore companies either side of me and the steel companies we've just been with are both striving for. And yes, security becomes a distraction, but for us, we're head down, tail up, strengthening that bilateral relationship in the best interests of Australian employment and every Australian.
JOURNALIST: Prime Minister, and also to you, Mr Forrest, as this is something you have a great interest in – but what's the ethical responsibility that Australia has to manufacture more iron ore in Australia before it leaves our shores?
PRIME MINISTER: Well, we have an interest in – I'm not sure it's about ethics, it's about economics.
JOURNALIST: Well, climate change-wise, I mean to say.
PRIME MINISTER: We have an interest in maximising the economic benefit. Part of that economic benefit will be about first mover advantage and about decarbonisation and making a positive difference as well. We see that there are advantages that we can have - I’ve spoken about the opportunity of dealing with climate change, as well as the challenge which is there.
DR FORREST: Look, I just speak to you as a passionate Australian, a person who’s always been happy to cart the oranges out for our country any time. And I simply say this – we face into a future of great instability with the environment and the atmosphere, not so much bilateral relationships. The instability in the atmosphere is poorly understood generally across industry and Australia leaning in to negate some of the worst pollution in the world through creating green metal in Australia, to be processed into green steel in China, is a massive single contribution which we can make for every man, woman and child in Australia.
JOURNALIST: Prime Minister, can I ask you, how hopeful are you that your visit in China will improve the case of Yang Hengjun? And to do so, does that mean you need to raise the case or stay silent about the case?
PRIME MINISTER: We always raise issues of Australian citizens. And if you look at my record, it is not too bad, certainly compared with any of my predecessors. I will put my record there of successfully advocating for Australian citizens, some of which has been criticised when we've been successful, by the way. But I believe that it's a responsibility, whether it be here in China, Indonesia, Vietnam, Myanmar, the United States and the United Kingdom – we have been successful at advocating for Australians, and I will always do that.
JOURNALIST: The companies here have all put their own dollars into infrastructure around green iron in the Pilbara. How much money is the Government willing to put – you said the Government is willing to support green initiatives – how much Australian taxpayer dollars are you willing to spend on green iron?
PRIME MINISTER: What we have is a range of funds, including our National Reconstruction Fund and other funds that we’ve created - importantly as well, what they’re looking at though is equity investments. We believe investment in these areas – the same reason why these businesses are investing. Notwithstanding the fact that they want to do the right thing, it's also driven by outcomes and bottom lines and economic benefit. So by the Australian Government making an investment in the transition, we expect it will produce a return to the Government through increased revenues as well as a range of these funds that have been established to provide loans, equity, to provide support in order to ensure that things can happen sooner than they would without that government support.
JOURNALIST: Prime Minister, you’re here clearly to emphasise the importance of Australia’s trade and business links with China. Does it frustrate you that while you’re here, we're getting stories leaked out of the Pentagon that are distracting from that and putting the focus on security instead? And to Dr Forrest, you mentioned Australia and China working together to escape the threats from AI to employment. Would you be able to just expand on that and how that would work in practice?
PRIME MINISTER: I'm very focused on my purpose of being here.
DR FORREST: Yes, I can. Fortescue Minderoo Foundation is deeply concerned about the impact of artificial intelligence on employment all over the world. We're seeing it happening now. Anyone who denies it just isn't tapped into the global economy, you are already seeing it happen. It emphasises the importance we've seen in Australia and China to make sure that new industries, incredibly beneficial for the economies of both countries, also drive employment in both countries. Nowhere is this more important for us than in Australia. The green iron industry, because it comes off a platform, such a massively successful platform, with Rio, BHP, Hancock, is the perfect platform to drive a huge new industry off, which is the green metal industry. That will generate hundreds of thousands of jobs, but critically, it protects the hundreds of thousands of jobs which are already employed by the iron ore industry. We need to protect that industry and grow our contribution to the global economy, to driving down carbon and to Australian employment.
PRIME MINISTER: Just be careful, he's had accidents before. Can we look after him, please? We look after people on this side.
JOURNALIST: Prime Minister, you talked about the calm and consistent way you like to conduct your relationship with China –
PRIME MINISTER: And everyone else, including you – collectively.
JOURNALIST: Collectively. So, everything isn't quite as calm and consistent around the globe at the moment, which is leading to a lot of righting and rewiring of trade relationships. Does that actually give Australia an opportunity to expand our relationship with China, and if so, is there anything in particular that you think we can gain or would like to ask for from China in your conversations with them?
PRIME MINISTER: Look, I look forward to the constructive dialogue I will have tomorrow with Premier Li and President Xi. I look forward to some positive outcomes, including we of course, this morning's discussion on decarbonisation is one of the issues that no doubt there is enormous opportunities going forward there. But I think that Australia's support for free and fair trade does provide potential opportunities for Australia in this region as well, not just with China, but with ASEAN nations. The world is looking at Australia as, I think, a country – that we are a good trading nation. One in four of our jobs depends upon trade. And so I think, certainly the discussions I’ve had with President Prabowo and Prime Minister Lawrence Wong for example, in Indonesia and Singapore respectively, we were very constructive about increasing our relationships. One of the things that we are pursuing as a government is diversification of our trading relationships - the review done by Nicholas Moore of investment, Australia’s South-East Asia Strategy 2040 is an example of that. So, between now and the end of the year, of course, with the ASEAN Summit, the APEC Summit that Australia, of course, founded back in 1993 with the first meeting in Seattle, they all represent opportunities for us to put our case about investment in Australia. As I said before, we welcome that. We want a strong economy, and that depends upon our international relationships as well as what we do domestically.
JOURNALIST: PM, just picking up on Laura's question. Australia's exposure to the US trade tariffs, so far the effect has been fairly minimal, comparatively, but we are more exposed if a broader global trade war breaks out, particularly if that impacts China, if China retaliates. What role do you see for Australia as a middle power in potentially stopping that from escalating, encouraging a country like China not to retaliate with its own tariffs?
PRIME MINISTER: Australia, of course, are responsible for our own policies. One of the things that we have done is to say that, we haven't said we would respond to any US decisions when they made the Liberation Day statement. I made it very clear that we wouldn't be imposing tariffs back, because tariffs are a cost on the country which imposes them. They produce higher costs and Australia, with the United States at this point in time has, there's no country that has a better arrangement than Australia, but we’ll continue to pursue our interests. We will do so orderly, in a stable way, continuing to put forward our position clearly to our friends in the United States.
JOURNALIST: Prime Minister, just briefly, obviously as you alluded to, iron ore and coal exports have been central to Australian prosperity, and therefore, indirectly, to security. Obviously, this doesn't apply to the main industry players. But do you think more broadly Australians have had a level of complacency, an assumption hundreds of billions of dollars will continue to flow into government coffers?
PRIME MINISTER: I think Australians understand the importance of the resources sector, and one of the things that comes out of a meeting like this is that it's a reminder to Australians of the important role these four companies play in our national economy. It plays a role, which is one of the reasons why my Government's approach has been also really clear and stable. We came to office in 2022, and one of the first pieces of legislation we introduced, with the support of the Business Council of Australia and Australian Industry Group and ACCI and other bodies as well as the conservation groups, was the legislated target of 43 per cent reduction by 2030 and net zero by 2050. Net zero, through the Safeguard Mechanism, applies to the biggest emitters and the Capacity Investment Scheme has exceeded, frankly, our expectations in terms of its success. But we want to provide these businesses and other businesses with investment certainty. That’s what helps drive an economy, investment certainty, so that you know – and my government, I think one of the messages on May 3 that I put forward was a clear plan going forward. I’m still trying to work out how they came up with their so-called gas plan, they didn’t seem to know that the ADGSM was in place, and various things. You know, that was a source of disruption, if I can use that word. And what we're providing is certainty and the businesses, we don't always agree on every issue, it's fair to say, but we don't ask for that, either. What we ask for is deliberative, honest discussions and engagement and that is what I give back as well, as the leader of the Government.
JOURNALIST: Dr Forrest is wearing a Ukrainian flag pin here today, you yourself are a strong supporter of Ukraine and its war against Russia. China is being accused of helping prolong the war by supporting Russia through military material and things like that. Is that something you will raise in discussions with the Chinese leadership? And do you see the world breaking into Western liberal democracies on one side and authoritarian countries like China, Russia, Iran, North Korea, on the other?
PRIME MINISTER: As I said before, I'm not doing a press conference today so I can go through everything that I'm going to raise tomorrow. But we have a strong position on support for Ukraine and against the illegal and immoral invasion by Russia. That’s an example of where conflict leads to economic costs, not just humanitarian costs. The biggest cost and concern there is the devastation that has been caused for innocent Ukrainian civilians, but there's been an economic cost in the global economy as well. One of the things that we saw was COVID, then a global inflation spike that can be traced very directly to the impact on Russian energy production, disrupting into Western Europe and a spike in those international costs. That had an impact in supermarkets in Australia, and it had an impact on the mortgage rates that people paid, because of global inflation. And so we can't divorce ourselves from that. That is why my Government will continue to put forward a clear position, engage. It’s why I engaged constructively at the G7 - I had another discussion with President Zelenskyy. I met with President Zelenskyy again in Rome and why Australia has said that we will give consideration, is what we have said, to any coalition of the willing that might be formed if peace were able to be achieved in Ukraine. Now that, for reasons beyond my comprehension, was not a bipartisan position at the last election. I'm not sure what our Opposition's position is on that, but I know what the Government's position is, and it's been consistent, and it’s been clear, and it’s been unequivocal.
JOURNALIST: Prime Minister, you said you're looking forward to talks tomorrow with President Xi. Are we closer to locking in a time with President Trump for a meeting?
PRIME MINISTER: Look, I'm focused here in China. I will no doubt have meetings. I do note that in the Fin Review today, the comments that this isn't, I've been to the United States five times, I've been to China twice. Tony Abbott visited Beijing before he visited Washington after his election, as did Malcolm Fraser, as did Kevin Rudd. So I think there just needs to be a little bit of perspective here. As much as I understand the fascination which is there, I've met with US representatives, our Australian Government ministers have been to the United States and I've been to the United States as well, just a couple of weeks ago. I look forward to a constructive engagement with President Trump. We have had three constructive phone conversations. I look forward to that happening between now and the end of the year - G20, Quad, APEC – a range of meetings as well as, of course, the potential for another visit to the United States.
JOURNALIST: Prime Minister, did you have a good dinner last night? And then more substantially –
PRIME MINISTER: I did, thank you very much. I can recommend the restaurant, and they did a toffee koala and kangaroo for us there, which was very much appreciated.
JOURNALIST: I’ll just follow up –
PRIME MINISTER: Thank you for that question.
JOURNALIST: It was good to bump into you last night. An influential state media influencer who used to work for a Chinese newspaper, he's posted an essay on your trip, focused on the Port of Darwin. He writes, ‘if the Australian side insists on tearing up the Port of Darwin contract, the Chinese side may take counter measures such as restricting Australian market access in China or tightening imports of key resources, such as iron ore’. Can I ask you, are you concerned about that kind of blow-back if you go through with your election commitment? And also to the business leaders who are here - that sounds like something you guys will be interested in. Are you guys worried about the Port of Darwin transaction leading to blow-back for your businesses?
PRIME MINISTER: The answer to that is no. We had a very clear position that we want the port to go into Australian ownership. We've been clear about it, we’ve been orderly about it, and we will go through that process. And I'm not aware of, you know – at the risk of, because I'm not sure who the blogger is or what have you - governments cannot respond in policy terms to every time there is an article written, a tweet or a blog, and change their position. Good government has a position, advocates for it and implements it. And mine is a good government. Thanks very much.