Mining industry groups welcome removal of critical minerals tariffs as part of free trade deal with EU

Australian mining industry groups have welcomed the removal of tariffs on critical minerals that will come into effect as part of the free trade deal concluded with the European Union this week. Association of Mining and Exploration Companies chief executive Warren Pearce said the deal would ensure Australian companies could compete on a fair basis, particularly at a time of geopolitical uncertainty. Mr Pearce said the agreement reinforced Australia’s position as a trusted, long-term supplier of critical minerals to global markets, with the EU representing a key destination as it accelerated its clean energy and advanced manufacturing ambitions. Behind China, the EU was the world’s second largest electric car manufacturing region, producing 2.4 million cars in 2024. “Europe is rapidly expanding its electric vehicle and clean energy manufacturing capabilities, and that requires secure and stable supply of critical minerals,” he said. “Australia is well-placed to meet that demand. “Our strong ESG standards give international partners confidence that our minerals are produced responsibly.” Mr Pearce said the removal of tariffs also created new opportunities for Australian producers and emerging developers to scale operations and attract investment. “Improved access to European markets sends a strong signal to investors that Australia is open for business and ready to play a leading role in global supply chains,” he said. “This deal is an important step in strengthening Australia’s trade relationships and supporting the long-term growth of our critical minerals sector.” Minerals Council of Australia chief executive Tania Constable said removing all tariffs on resources and critical minerals strengthened Australia’s competitiveness and supported predictable, open trade with a key strategic partner. Ms Constable said the agreement, together with the Australia–EU Strategic Partnership on Critical Minerals, positioned Australia as a reliable, long‑term supplier of the minerals essential to energy systems, defence technologies, advanced manufacturing and broader industrial resilience. She said the agreement improved market access for Australian miners, enhanced investment certainty, and provided a strong platform for increased EU investment into Australian mining projects, downstream processing and critical minerals supply chains. Ms Constable said these settings would support value‑adding opportunities in minerals including lithium, rare earths, antimony, nickel, cobalt, copper and uranium. She said, importantly, the deal recognised and supported the role of Aboriginal and Torres Strait Islander Australians, local communities and strong social licence as foundations for reliable, long‑term resource development.