China shipment strike

China has blocked a shipment of Australian critical minerals headed to the US and sent it back to Australia in actions that will serve to only strengthen resolve to shore up Western supply chains. The shipment of 55 tonnes of antimony concentrate mined in Victoria was held up for three months at the port of Ningbo in Zhejiang Province, and only released by Chinese authorities on condition it was returned to Australia, instead of being sent on to New York-listed US Antimony Corporation. According to a report in The Australian the incident came as US Antimony, the only antimony smelter operator in North America, was looking to step up production and secure a $US240m ($367.6m) supply contract with the US Department of Defense. The Albanese government’s recent decision to offer an A$137m bailout to lead and zinc miner/processor Nyrstar, was motivated in part by Nyrstar’s promise to build a pilot plant at Port Pirie in South Australia to process antimony. Antimony is used to harden lead in ammunition – particularly armour-piercing rounds – and in infra-red missiles. US Antimony was so concerned about China’s actions it asked for help from the US State Department and the White House. ASX-listed Alkane Resources, which owns the Costerfield gold and antimony mine in Victoria, said it would never again send an antimony shipment bound for the US via China, even though there had been no problem with previous shipments. China banned its exports of antimony to the US last December in retaliation for US restrictions on China’s semiconductor industry. Australia has been working to improve supply chain security and reliability for the past five years after vulnerabilities were exposed by the Covid Pandemic and amid an era of increasing global geostrategic competition.

Defence procurement reforms urged

Defence Industry Minister Pat Conroy and Industry and Innovation Minister Tim Ayres convened a meeting of the Tri-Partite Defence Industry Council this week in Canberra to gather input for the Treasurer’s upcoming Economic Reform Roundtable. AIDN CEO Mike Johnson was among industry leaders who provided ideas at the meeting which was primarily focussed on opportunities to improve productivity. In a statement the Ministers suggested improving defence sector productivity – including through reforms to Defence procurement – could play an important role in strengthening the Federal budget. Further consultation with industry would occur as part of the 2026 Defence Industry Development Strategy (DIDS). Consultation to identify challenges and opportunities for inclusion in the DIDS will commence in September, with a focus on further accelerating the development of the industrial base. The next Tri-Partite Defence Industry Council meeting will be held in early 2026. Dr Chalmers has said all ideas will be welcome at treform, workforce and skills initiatives, the adoption of new technologies, research and development, growth, and productivity.

Defence Industry frustrated with AUKUS Pillar 2

A report released this week which examined AUKUS Pillar 2 found many firms in Defence industry were frustrated with the initiative which has shown very little progress over the past four years amid a lack of funding and definition. The report released by the Australian Industry Group and including a survey of 100 industry representatives found companies were frustrated with AUKUS Pillar 2. Under the initiative, the tri-lateral partners the US, UK and Australia are to promote the development of advanced capabilities such as undersea drones, hypersonic missiles, artificial intelligence, and Quantum computing. Ai Group Chief Executive Innes Willox said the research showed that while there was strong political backing for the initiative, the program needed clear capability and acquisition pathways and specific designated funding. He added that there was a lack of understanding across the Defence sector of what AUKUS Pillar 2 was trying to accomplish. This was both hampering industry engagement and investment de

Victoria backs Defence manufacturers

More Victorian manufacturers are set to join the supply chain as part of the Australian Army’s largest every acquisition project. Victorian Minister for Industry and Advanced Manufacturing Colin Brooks this week visited the Hanwha Defence Australia Armoured Vehicle Centre of Excellence (H-ACE) at the Avalon Airport Industrial Precinct to announce the recipients of a new round of the Supply Chain Uplift Program. More than $800,000 has been awarded to 11 businesses to help them compete for contracts as part of the supply chain for Hanwha Defence Australia and other major defence businesses – creating new jobs, export opportunities, and attracting investment. The successful companies are Blueroom Simulations, EnyGy, Lunar Outpost, R&I Instrument & Gear Co., Ribcraft Marine, Ronson Gears, Skills Leap Australia, Stahl Metall, Total Precision, TRJ Engineering and Vokke. Hanwha Defence Australia is delivering the Australian Government’s $1 billion LAND 8116 Phase 1 Protected Mobile Fires program featuring the Huntsman vehicles (AS9 Self Propelled Howitzer and AS10 Armoured Ammunition Resupply Vehicle) and the $5-7 billion LAND 400 Phase 3 – Infantry Fighting Vehicle featuring the AS21 Redback.

STEM scholarships program

The Australian Academy of Technological Sciences and Engineering (ATSE) has been chosen to deliver $15.8 million in STEM scholarships to support Australia’s future nuclear-powered submarine workforce. The Academy will partner with the Australian Submarine Agency to deliver 3,000 scholarships through the newly established Propel: Australian Submarine Scholarship program. Propel will support students undertaking tertiary studies in priority STEM areas to help grow the future workforce needed to deliver Australia’s nuclear-powered submarines. Applications will open later this year, with students receiving initial scholarship payments in 2026. ASA Deputy Director-General Technical, Tim Hodgson, said the new scholarships would support young Australians develop the capabilities needed to safeguard the nation. Across Australia, the nuclear-powered submarine program is expected to create around 20,000 highly skilled jobs for Australians for decades to come.