In a recent submission to the Senate Economic Legislation Committee, Fair Futures has expressed strong support for the federal government’s Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024.
The organisation, which focuses on sustainability and human rights, argues that this legislation could bolster Australia’s emerging critical minerals industry while simultaneously decreasing dependence on minerals sourced from countries with significant human rights issues.
Fiona David, the organisation’s leader and a seasoned human rights attorney, emphasises the pressing need for Australia to transition away from critical minerals produced in these regions.
With 2024 marking the first year to surpass 1.5 degrees Celsius above pre-industrial levels, David highlights the urgency for economies like Australia to adopt renewable energy solutions.
However, she cautions that this transition should not come at the expense of human rights.
“Imported critical minerals may appear ‘cheap,’ but they don’t factor in the real price of human rights abuses up to and including forced labour and slavery,” she stated.
“We need to consider these hidden human costs to ensure our efforts to decarbonise are not inadvertently contributing to human rights abuses offshore.”
The submission details various instances of human rights violations associated with critical mineral extraction and processing.
For example, Indonesia, the largest producer of nickel ore, has been flagged by the US government for its production involving child and forced labour.
Reports indicate that workers from China have been misled into working in Indonesian nickel smelters under exploitative conditions, including confiscation of passports and inadequate safety measures.
China’s dominance in the rare earth elements market poses similar concerns.
It accounts for 70 per cent of global supply, with much of its production linked to illegal mining operations in Myanmar’s Kachin State.
Allegations include child labour and violent intimidation by local militias involved in mining activities. Despite Australia being a leading lithium producer, about 72 per cent of global lithium refining occurs in China, particularly in regions notorious for forced labour practices against Uyghurs and other Muslim minorities.
The Democratic Republic of Congo (DRC) is another critical area of concern; it produces nearly 75 per cent of the world’s cobalt, much of which is linked to forced and child labour.
Furthermore, China processes a significant portion of this cobalt in Xinjiang, where similar forced labour issues persist.
Silicon production also raises alarms as reports indicate forced labour practices among Uyghur workers in the extraction and processing phases.
David argues that it is unrealistic to expect Australian miners who adhere to fair labour standards to compete with those benefiting from exploitative practices abroad.
She advocates for amendments to the Statement of Compatibility with Human Rights that accompany the bill, suggesting that the Critical Minerals Production Tax Incentive (CMPTI) should be aligned with human rights principles.
“We welcome the CMPTI’s influence on Australia’s obligations to prevent forced labour by encouraging domestic supply produced under robust labour conditions,” David concluded.
“Only then can we ensure that Australia’s energy transition is both green and fair, rather than built on human rights abuses abroad.”
