Tag Archive for: Northern Australia

Darwin Dialogue 2024: Triumph from teamwork

In an increasingly fracturing international system, set to undergo only further strain in the near future, critical minerals are a point of significant international contention. Critical minerals underlie competition across critical civil and defence sectors and promise economic opportunity throughout their supply chain. They are vital to the clean-energy transition with minerals needed for electric vehicle batteries, solar panels, and even wind turbines. Resolving the significant vulnerabilities across critical mineral supply chains is a significant economic and national security challenge.

This report—based on an exclusive, invitation-only discussion at the Darwin Dialogue 2024, a 1.5 Track discussion between the Australian, United States, Japanese and Republic of Korean Governments-makes 11 recommendations for government and industry to develop both the domestic and international critical minerals sector.

This report also assesses the developments in Australia’s critical mineral policy since the inaugural Darwin Dialogue in April 2023, including the flagship Future Made in Australia policy; policy options to unlock new sources of domestic and international capital for the Australian critical minerals sector, and, how to better promote high ESG compliance in the international critical minerals market.

Australia’s natural endowments of critical minerals promise significant economic opportunity. But seizing this opportunity is dependent on teamwork. The Australian Government must work effectively with domestic state and territory governments, as well as close minilateral partners, to resolve the threats facing the critical minerals sector and develop secure and resilient supply chains for ourselves and the international community.

Building whole-of-nation statecraft: How Australia can better leverage subnational diplomacy in the US alliance

Australia and the US are both federations of states in which power is shared constitutionally between the national and subnational levels of government. However, traditionally, one domain that hasn’t been considered a shared power, but rather the constitutionally enshrined responsibility of the national governments, has been international affairs (in the US Constitution through Article I, Section 10 and other clauses and in the Australian Constitution through section 51 (xxix), known as the external affairs power). For this reason, foreign-policy and national-security decision-makers in Washington DC and Canberra have rightly seen themselves as the prime actors in the policymaking that develops and strengthens the US–Australia alliance and all global relationships, with limited power held by subnational governments.

However, in our globalised and digital world, constitutional power no longer means that subnational governments have only narrow roles and influence on the international stage. While national governments will continue having primary responsibility for setting foreign policy, subnational governments have offices overseas, sign agreements with foreign governments, and regularly send diplomatic delegations abroad. Recent events, including the Covid-19 pandemic, have highlighted subnational governments’ decisive role in shaping, supporting, adapting to and implementing national and international policy. The pandemic, including post-pandemic trade promotion, demonstrated that the relationships between layers of governments in both federations are essential to national security, resilience, economic prosperity and social cohesion.

Subnational governments have vital roles to play in helping to maximise national capability, increase trust in democratic institutions, mitigate security threats and build broader and deeper relationships abroad. At the subnational level in Washington and Canberra, people-to-people, cultural and economic links create the deep connective tissue that maintains relationships, including those vital to the US-Australia alliance, no matter the politics of the day. But that subnational interaction must be consistent with national defence and foreign policy.

Australia’s federal system should help facilitate international engagement and incentivise positive engagement while ensuring that the necessary legislative and policy levers exist to require the subnational layer to conduct essential due diligence that prioritises the national interest. In this report, the authors make a series of policy recommendations that will support the development of such a framework.

Developing Australia’s critical minerals and rare earths: Implementing the outcomes from the 2023 Darwin Dialogue

Critical minerals and rare earths are the building blocks for emerging and future technologies, inseparable from the supply chains of manufacturing, clean energy production, medical technology, semiconductors, and the defence and aerospace industries. Despite their criticality, their supply chains are exposed to numerous vulnerabilities – threatening the production and development of vital technologies.

This report—based on closed-door, invitation-only discussions at ASPI’s new Darwin Dialogue, a track 1.5 meeting between Australia, Japan and the US—makes 24 recommendations for government and the private sector to support the development of viable, competitive alternative markets that offer products through supply chains secure from domestic policy disruptions and economic coercion.

These recommendations are derived from analysis of the challenges embedded in critical minerals supply chains, including the inability for global production to meet projected demand, and dependency upon China and politically unstable nations as at times near singular sources of production.

Australia’s natural endowments of critical minerals and rare earths provide a unique opportunity to achieve intersecting economic, environmental, and strategic objectives. But, as detailed in this report, effective coordination between Australia’s state, territory and federal governments, mining and industry, and international partners will be pivotal to developing this opportunity. Further still, achieving our critical minerals objectives will require a bold new policy approach from all stakeholders.

Australia’s north and space

This report examines opportunities for the development of sovereign space capability in the Northern Territory, Queensland, and Western Australia. Given that those northern jurisdictions are closer to the equator, there’s a natural focus in the report on the potential opportunities offered by sovereign space launch, particularly in the Northern Territory and Queensland. However, I also consider the potential for other aspects of space besides launch, including space domain awareness, the establishment of satellite ground stations, and space industry. I explore the potential for the co-location of space industry—domestic and international—within or close to launch sites, which would result in the development of ‘space hubs’ in strategic locations in Australia.

Benefits are gained by situating space-launch sites as close to the equator as possible, and two sites—Nhulunbuy near Gove in the Northern Territory and Abbot Point near Bowen in Queensland—are now under development. The closer a launch site is to the equator, the greater the benefit in terms of reduced cost per kilogram of payload to orbit, due to velocity gained by a rocket from the Earth’s rotation.

The report then explores the transformation of Australia’s space sector that’s occurred within the past decade, from one solely dependent on foreign-provided satellite services and locally developed ground-segment capabilities, including for space domain awareness, to the growth of sovereign space industry and the establishment of the Australian Space Agency in 2018. I note that, since the establishment of the agency, Australia’s commercial space sector has expanded rapidly, but now faces headwinds, with the recent cancellation of the National Space Mission for Earth Observation being a serious blow to Australia’s space industry. The Australian space industry sector must now fight to sustain funding. In this report, I argue that the best way to achieve success is to emphasise sovereign launch as a focus for Australian space activities and to reinforce the potential opportunities offered by the north, including for defence and national-security requirements in space.

AUKUS and critical minerals: Hedging Beijing’s pervasive, clever and coordinated statecraft

AUKUS has a heavy focus on R&D of military capabilities. A number of departments, including defence, foreign affairs and prime ministerial equivalents are engaged. The science and technology to deliver those capabilities must resolve issues of insecure supply chains. Currently, supply chains for processed critical minerals and their resulting materials aren’t specifically included.

Yet all AUKUS capabilities, and the rules-based order that they uphold, depend heavily on critical minerals. China eclipses not only AUKUS for processing those minerals into usable forms, but the rest of the world combined. Without critical minerals, states are open to economic coercion in various technological industries, and defence manufacturing is particularly exposed to unnecessary supply-chain challenges.

This is where Australia comes in. Australia has the essential minerals, which are more readily exploitable because they’re located in less densely populated or ecologically sensitive areas. Australia also has the right expertise, including universities offering the appropriate advanced geoscience degrees, as well as advanced infrastructure, world-class resources technology and deep industry connections with Asia and Africa, which are also vital global sources of critical minerals.

This paper outlines why Australia offers an unrivalled rallying point to drive secure critical-mineral supply among a wide field of vested nations, using AUKUS but not limited to AUKUS partners, how WA has globally superior reserves and substantial expertise, and why northern Australia more generally has a key role to play. The paper also explains why policy action here must be prioritised by the Australian Government.

North of 26 degrees south and the security of Australia: Views from The Strategist, Volume 6

The Northern Australia Strategic Policy Centre’s latest report, North of 26 degrees south and the security of Australia: views from The Strategist, Volume 6, is a series of articles published in The Strategist over the last six months, building on previous volumes by identifying critical intersections of national security, nation-building and Australia’s north.

This issue, like previous volumes, includes a wide range of articles sourced from a diverse pool of expert contributors writing on topics as varied as maritime law enforcement, equatorial space launch, renewable energy infrastructure, rare earths and critical minerals, agriculture, Industry 4.0, advanced manufacturing, fuel and water security, and defence force posturing. It also features a foreword by the Honourable Madeleine King MP, Minister for Northern Australia.

Minister King writes, “Northern Australia promises boundless opportunity and potential. It is the doorway to our region and key to our future prosperity.”

The 24 articles propose concrete, real-world actions for policy-makers to facilitate the development, prosperity and security of Australia’s north. The authors share a sense that those things that make the north unique – its vast space, low population density, specific geography, and harsh investment environment – are characteristics that can be leveraged, not disadvantages.

This is a link to the previous volume 5.

‘Deep roots’: Agriculture, national security and nation-building in northern Australia

This report offers a multidisciplinary analysis of the various components that make up and influence the vast and complex agriculture industry network in northern Australia. It examines the economic and historical underpinnings of the agriculture industry we know today; the administration, direction and implementation of agricultural policy and funding across levels of government; the many and varied demographic and cultural characteristics of the northern Australian population; and the evolution of place-based physical and digital infrastructure.

The role of infrastructure and infrastructure funding in northern Australia plays a key role in the report’s narrative, which outlines the implications for national security, economic prosperity, service delivery, social cohesion and policy implementation if prevailing arrangements aren’t reformed to a sufficient standard that addresses contemporary challenges.

The report also examines biosecurity vulnerabilities, mitigation strategies for those vulnerabilities and their strategic and national security implications, and the long-term positioning of the north of Australia as critical for future growth, prosperity and security. The focus on opportunities presented by the north’s unique nature throughout the report culminates in a set of recommendations for policymakers to take a unified and big-picture approach across a daunting array of issues and disciplines.

This report suggests:

  1. a unified message among all relevant stakeholder groups with awareness of the strategic role of the northern agriculture sector
  2. greater investment in agricultural research to grow and protect agricultural industries (prosperity is key to security)
  3. greater engagement of Indigenous populations, with genuine appreciation for the role of Indigenous people and their connection and knowledge of land and  water as the key to unlocking potential.
  4. a cohesive nation-building plan.

Breaking down the barriers to Industry 4.0 in the north

Innovation in northern Australia is thriving. It’s not clear why there’s a culture of innovation in the north, and perhaps that represents a focus for social research. However, there’s no doubt that innovators in northern Australia are seizing the opportunity to pursue solutions that generate economic benefits, contribute to national resilience, and respond to defence needs.

This special report highlights how innovators in the north are at the leading edge of the fourth industrial revolution and draws attention to the challenges they face.

Industry 4.0 represents opportunities to transform, but it’s not just about developing and adopting smart technology. And it’s not about evolutionary or transformative change; it’s a different way of thinking that will allow us to leap into a different future. To reap the transformative benefits from Industry 4.0 we need to adopt leading-edge technology in the best way to deliver better outcomes from the perspective of a wider range of interests.

But there are barriers. Australia has regulatory and standards frameworks and mechanisms that have evolved from traditional Industry 2.0 process thinking and Industry 3.0 manufacturing. There are inherent conflicts within and between sectors that safeguard the status quo of outdated and broken supply chains and wasteful manufacturing paradigms.

Through the lens of real experiences and success stories, this special report shines a light on the opportunities and challenges, and highlights what’s needed to better harness those opportunities. In particular, we need to:
•    Drive national capability through a philosophical positioning that’s supported by practical examples of innovation.
•    Acknowledge that economic theory underpinned by a need to have large-scale manufacturing and production lines for viability is thinking not aligned with the opportunity that Industry 4.0 presents.
•    Align government thinking and practice with the growing environmental, social and governance mindset of business and the growing expectations of investors, consumers and the community.
Northern innovators have a commitment to Australia, its future and the kind of world that they want to create for future generations. Thus, they conceptualise, create and deliver by leveraging Industry 4.0 thinking and technology.

Technology doesn’t drive change, but how they use it does. This is sovereign capability in action.

North of 26 degrees south and the security of Australia: Views from The Strategist, Volume 5

The Northern Australia Strategic Policy Centre’s latest report is a series of articles published in The Strategist over the last six months, building on previous volumes by identifying critical intersections of national security, nation-building and Australia’s north.

This issue, like previous volumes, includes a wide range of articles sourced from a diverse pool of expert contributors writing on topics as varied as biosecurity, infrastructure, critical communications, cyber-resilience, maritime infrastructure, foreign investment, space, and Indigenous knowledge-sharing. It also features a foreword by ASPI’s new Executive Director, Justin Bassi.

The 19 articles propose concrete, real-world actions for policy-makers to facilitate the development, prosperity and security of Australia’s north. The authors share a sense that those things that make the north unique – its vast space, low population density, specific geography, and harsh investment environment – are characteristics that can be leveraged, not disadvantages.

Agenda for change 2022: Shaping a different future for our nation

In line with previous Agenda for Change publications from 2016 and 2019, this piece is being released in anticipation of a federal election as a guide for the next government within its first months and over the full term. Our 2022 agenda acknowledges that an economically prosperous and socially cohesive Australia is a secure and resilient Australia.

ASPI’s Agenda for change 2019: strategic choices for the next government did, to a great extent, imagine a number of those challenges, including in Peter Jennings’ chapter on ‘The big strategic issues’. But a lot has changed since 2019. It was hard to imagine the dislocating impacts of the Black Summer fires, Covid-19 in 2020 and then the Delta and Omicron strains in 2021, trade coercion from an increasingly hostile China, or the increasingly uncertain security environment.

Fast forward to today and that also applies to the policies and programs we need to position us in a more uncertain and increasingly dangerous world.

Our Agenda for change 2022 acknowledges that what might have served us well in the past won’t serve us well in this world of disruption. In response, our authors propose a smaller number of big ideas to address the big challenges of today and the future. Under the themes of getting our house in order and Australia looking outward, Agenda for change 2022 focuses on addressing the strategic issues from 2021 and beyond.

Tag Archive for: Northern Australia

Northern Australia’s economic revival can support defence readiness

Two blueprints that could redefine the Northern Territory’s economic future were launched last week. The first was a government-led economic strategy and the other an industry-driven economic roadmap.

Both highlight that supporting the Northern Territory is not just an economic necessity; it is a national security imperative. By aligning defence priorities and economic development, Australia can ensure the Northern Territory is a resilient and self-sufficient pillar of our national defence strategy.

The Northern Territory Government’s Economic Strategy 2025 sets out a determined investment plan to drive economic growth using the Territory’s natural resources, strategic location and emerging industries. It prioritises renewable energy, critical minerals, transport and digital connectivity, tourism, and workforce capacity building. These areas are intended to enhance trade links with Asian markets and achieve annual growth in gross state product that exceeds national GDP growth.

Simultaneously, the Darwin Major Business Group’s What the Territory Needs 2025 roadmap presents an industry-led approach to the Territory’s economic revitalisation focusing on defence, agriculture and critical minerals. By upgrading Darwin Port and expanding renewable energy projects, it seeks to establish the Territory as a trade and energy hub while aligning with national security priorities to attract federal funding and international partnerships.

Both strategies recognise the Territory’s role in Australia’s defence posture and the fact that the Territory’s economic strength underpins national security. Revitalisation of the Territory could reduce reliance on imports, sustain defence operations and reinforce Australia’s ability to project power in the Indo-Pacific.

But progress to transform Northern Australia into a hardened defence hub is slow and limited to enabling infrastructure contained within the defence estate. For example, Defence has earmarked billions over the coming decade to strengthen northern bases. Beyond this, secure energy, stable digital connectivity, reliable water supply and resilient transport networks are required to sustain military operations and accommodate extreme demand surges during joint training exercises.

Defence investment in the Northern Territory cannot operate in isolation. Without a strong economy to sustain it, Defence will struggle to reach its full posting potential. The Territory needs affordable housing, healthcare, education and job opportunities for defence families and industry. Otherwise, recruitment and retention will suffer, places such as Darwin and Katherine will continue to be considered ‘hardship’ postings, and the Territory will be unable to build the workforce needed to support a growing Defence presence.

Both economic strategies recognise that private sector investment must be mobilised alongside government funding. The industry-led strategy can ensure a faster, more agile approach to infrastructure development by using private capital, streamlining regulations and incentivising business. Encouraging the private sector to co-invest in dual-use infrastructure—ports, airstrips and logistics hubs—will create lasting economic benefits while supporting defence capabilities.

Unlocking the Territory’s vast critical mineral reserves and energy resources must also be framed in a national security context. The Beetaloo Basin’s gas potential and the Territory’s deposits of rare earth elements can contribute to energy security and domestic manufacturing growth and self-resilience. The Adelaide River Off-stream Water Storage project ensures reliable potable water supplies for defence bases, training areas and disaster response operations. This shows how infrastructure investment can serve both economic and military needs.

The Northern Territory has a once-in-a-generation opportunity to become Australia’s northern powerhouse for defence and critical minerals. But success will require sustained bipartisan support and collaboration between government, industry and Defence. The window for action is narrowing. As regional tensions rise and global competition for supply chain sovereignty intensifies, Australia must seize the opportunity to strengthen its northern frontier.

House of cards: northern Australia’s liquid fuel resilience

Northern Australia’s liquid fuel infrastructure is the backbone of defence capability, national resilience, and economic prosperity. Yet, it faces mounting pressure from increasing demand, supply chain vulnerabilities and logistical fragilities.

Fuel security is not just about stockpiling: it hinges on accessibility when and where it’s needed, diversity in suppliers and supply routes, and adaptability to changing circumstances to maintain a stable supply, even in times of crisis.

Australia should consider activating dormant fuel reserves, developing a domestic fuel refinery, hardening logistics chains and preparing contingency measures.

At first glance, northern Australia’s fuel security appears robust, with key Defence bases (HMAS Coonawarra, RAAF Darwin and RAAF Tindal) providing guaranteed demand. Meanwhile, regional economic activity is sustained by reserves at Melville Bay, Nhulunbuy and Darwin’s East Arm Precinct, which includes both Vopak’s commercial and Crowley’s eventual Defence reserves.

Crowley’s East Arm facility will, when complete, be the linchpin of the region’s fuel security, holding 300 million litres of jet fuel, 90 percent allocated to defence operations. By comparison, RAAF Darwin’s 12 million litres and RAAF Tindal’s 14 million litres are fully committed to military use, while HMAS Coonawarra contributes 6 million litres of diesel for naval readiness. Civilian infrastructure supports industry and local communities, including reserves such as Vopak’s 174 million litres, Melville Bay’s 30 million litres of commercial diesel and Nhulunbuy’s estimated 20 million litres.

This dual-purpose system attempts to balance military preparedness with economic necessity, yet these figures tell only part of the story. The apparent stability of northern Australia’s fuel network is an illusion: the system works well only without supply disruptions or rapid demand increases.

90 percent of all liquid fuel is imported and northern Australia remains highly vulnerable to supply disruptions. Seasonal flooding can sever road links between Darwin, Tindal and the air force’s bare bases (RAAF Curtin, Learmonth and Scherger). This shows up a fragile logistics network that adversaries could exploit, or natural disasters could disrupt.

Australia’s national fuel security has been steadily eroding for years, with national stockpiles consistently falling short of the International Energy Agency’s 90-day benchmark. The 2022 Russia-Ukraine war highlighted these vulnerabilities. As global supply chains tightened, Australia’s limited reserves became more apparent. While additional storage alone couldn’t eliminate supply shocks, in a crisis it would provide an important time buffer.

The risks are particularly acute in the Top End. Disruptions in Asian refineries, blockages in key shipping lanes such, as those through the South China Sea, or a severe cyclone hitting Darwin’s port could cripple fuel supplies, leaving aircraft grounded, naval operations stalled, and communities isolated. The region’s dependence on limited road transport further amplifies the challenge, particularly when considering fuel delivery to the air force’s northern bare bases.

To address these vulnerabilities, Australia should activate Melville Island’s dormant fuel reserves; develop a domestic fuel refinery in the Northern Territory; harden the logistics backbone; and integrate Vopak and Nhulunbuy into a contingency network.

Just 80 kilometres from Darwin, Melville Island’s port and 30 million litres of existing fuel storage could be a valuable defence asset. With infrastructure upgrades, including new pipelines, tanker berths and integrated defence agreements, Melville could evolve into a dual-purpose hub, reinforcing Australian Defence Force operations and supporting regional economic activity. Increasing redundancy in supply locations enhances operational flexibility and minimises the risks posed by bottlenecks in a single storage site.

Australia’s dependence on imported aviation fuel is a glaring strategic risk, so it should consider a domestic fuel refinery in the Northern Territory. Even a modest refinery capable of processing 10,000 barrels (1.6 million litres) per day could meet at least half of RAAF Tindal’s requirements. While refining capability is not a silver bullet, it would strengthen Australia’s self-sufficiency, ensure a baseline level of operational continuity in a prolonged crisis and reduce Australia’s fuel vulnerabilities.

The Northern Territory’s logistics backbone should be hardened, as it is highly vulnerable to seasonal disruptions: the 320 kilometre highway connecting Darwin and Tindal is a single, flood-prone artery. The government should consider paying for all-weather road upgrades, developing redundant transport routes and exploring alternative logistics solutions, such as a dedicated rail spur. Prepositioned fuel caches near the RAAF’s bare bases could provide a buffer in times of crisis, ensuring operational continuity when primary supply lines are compromised.

Finally, integrating Vopak and Nhulunbuy into a contingency network would establish a reliable fallback system. Nhulunbuy’s fuel capacity of 20 million litres presents a potential strategic reserve but is geographically isolated. Infrastructure improvements, combined with an ADF contingency agreement to access Vopak’s 174 million litres, could ensure continued fuel availability if Darwin’s primary storage and distribution networks were disrupted. A dispersed and resilient fuel network minimises single points of failure, reinforcing Australia’s ability to sustain prolonged operations.

Fuel security demands long-term commitment, but it would reinforce Australia’s defence capabilities. Without assured fuel supply, even the most advanced military platforms become useless.

Without further investment in supply chain resilience, infrastructure modernisation and domestic production, fuel shortages will continue to undermine Australia’s capacity to project force and sustain operations. It is time to double down on what works and strengthen what does not.

Northern Australia strengthens its role in economy and energy security

Each day, more than 160 airline flights carrying 13,000 passengers take off and land at Perth Airport to and from destinations across northern Australia. They ferry skilled workers to and from minerals and energy operations. Darwin and Brisbane airports also host air services to and from northern Australian resources hubs.

This provides a real-time indicator of the health of the Australian resources sector, which is overwhelmingly concentrated north of the 26th parallel.

In 2023-24, aircraft and passenger movements between Perth and Western Australian destinations exceeded interstate traffic for the first time, pushing the airport to new throughput records.

Despite price weakness for some minerals, the resources sector remains healthy. Northern Australia’s minerals maintain outsized importance in the national economy and for state and federal government revenues.

The Department of Industry, Science and Resources’ latest Resources and Energy Quarterly, released in December 2024, highlights the fact that the minerals and energy sector generates two thirds of national exports and 11.4 percent of GDP.

Northern Australia’s minerals and energy dominance makes it central to the national resources sector and thus much of the Australian economy. In 2023–24, the combined value of the top four exports from northern Australia—iron ore, liquified natural gas (LNG), metallurgical coal and thermal coal—was $261 billion, or 63 percent of total resource exports.

Northern Australia contributes almost all the nation’s iron ore exports, expected to total more than 900 million tonnes in 2024, or some 56 percent of global seaborne trade in the commodity.  Export value is about $140 billion. While iron ore prices are expected to soften in 2025, volumes are forecast to rise. The Pilbara remains by far the largest iron ore production centre in the world.

Metallurgical coal is northern Australia’s next largest export by tonnage, with the north contributing 46 percent of global supply. All 81 million tonnes of the nation’s LNG exports in 2023-24, worth $69 billion, came from northern Australia. This supply is vital to the energy security of economies such as Japan, Taiwan and South Korea.

Exploration spending is the long-term bellwether for the minerals industry. According to S&P Global data, northern Australia hosts 803 of more than 2000 exploration properties in the country. Australia-headquartered companies operate 632 of them. Identified reserves and resources in exploration properties are valued at $14 trillion.

While data is unavailable on mineral and petroleum exploration spending for northern Australia as a region, there is an indicator in the trend in the Northern Territory, where mineral exploration budgets were up 86 percent in the five years to 2023-24. The search for deposits of critical and strategic minerals such as lithium, copper and uranium drove the rise.

S&P Global records 163 mines in northern Australia, including those under construction. Outputs include copper, lithium, zinc, phosphate, vanadium, manganese, rare earths, gold, and metallurgical and thermal coal. The 11 secondary processing plants in northern Australia produce refined products such as alumina and metals including aluminium, copper and zinc.

Northern Australia, with abundant land and sunshine, is already a major source of renewable energy, with high potential for very large-scale production. From the Pilbara to the central Queensland resources hub, mines and mineral processing plants are increasingly sourcing energy from solar generators, backed by coal or gas. Whether exports of electricity and products such as green hydrogen are viable and will find markets remains to be seen.

While northern Australia’s minerals and energy future and its national economic contribution remain very positive, the region faces challenges in sustaining and growing production. As a December ASPI report highlighted, the region is vulnerable to natural disasters, particularly as some of its infrastructure is inadequate in the face of severe weather events. The government needs to spend more to maintain vital transport links as well as energy and telecommunications services.

Federal and state project assessment and approval processes have improved during the past decade and must continue to do so while maintaining scientific rigor. Efficient coordination between levels of government and between agencies is vital.

New lower-cost LNG supply from the United States and Qatar puts pressure on Australian LNG projects and their host governments to control costs of both construction and operations.

Several critical minerals projects in northern Australia have been held back by depressed and volatile prices, largely due to market manipulation by the current dominant producer, China. Australia and like-minded governments are working together to underwrite the commercial viability of such projects so they can attract global financing and move to construction and operational phases.

The thousands of workers who commute by air to, from and within northern Australia are testament to the strength of the resources sector, but also highlight the region’s chronic shortage of resident skilled workers. More locally and regionally based workers will help northern Australia capture greater value from its industries. The liveability of the north’s cities and towns is key to attracting and retaining more people.

The daily stream of jets from major population centres to northern Australia, however, will remain the main source of skilled people that contribute so much to the national economy and its energy security.

Darwin is well-placed for an uncrewed systems hub

Australia often relies on overseas facilities for uncrewed systems’ maintenance, repair and overhaul (MRO), exposing the country to operational delays, escalating costs and potential security risks. To address this vulnerability, it should establish an MRO facility for uncrewed systems in Darwin.

Uncrewed systems, including drones, uncrewed aerial vehicles and uncrewed underwater vehicles, are transforming Australia’s defence, security and commercial sectors. They have a range of applications in defence operations, border security, environmental monitoring and industrial applications such as extraction of natural resources, including natural gas.

Darwin’s strategic location, existing infrastructure and proximity to major defence and commercial partners mean it is the ideal hub for maintaining these vital assets.

The city’s strategic significance, long recognised by Australia’s defence planners, makes it the natural location for a dedicated MRO facility. As the gateway to the Indo-Pacific, Darwin’s proximity to regional and global markets, particularly Asia, provides an unparalleled advantage for servicing domestic and international clients.

This places Darwin at the crossroads of Australia’s defence and commercial interests in the region, with clear benefits for its role as a logistics and maintenance hub for uncrewed systems. Furthermore, the city’s established infrastructure, including air and sea ports, rail connections and utilities, already supports large-scale defence operations and the growing defence footprint in the region, making it primed for expansion into a world-class MRO hub for uncrewed systems.

Australian uncrewed systems are largely serviced overseas, leaving them vulnerable to extended downtimes, longer repair times and increased risk in transportation. This reliance on foreign facilities compromises Australia’s operational readiness. It hampers the efficiency of industries, such as resource extraction, that rely heavily on uncrewed technology for monitoring, inspections and surveillance.

As the Australian Defence Force and commercial sectors increasingly deploy uncrewed systems, it is essential to ensure they can be maintained and repaired promptly to avoid delays in operations, whether they involve national security, disaster response or remote infrastructure management.

As uncrewed systems are central to the future of defence operations, creating an MRO facility in Darwin would strengthen Australia’s position as a key partner in the region, with the ability to service not only its own uncrewed systems but also those of allied nations. This strategic advantage would provide a competitive edge in defence readiness and international collaborations.

Moreover, Darwin’s potential MRO facility could support other government agencies, such as the Australian Federal Police, Home Affairs and the Australian Border Force. They all use uncrewed systems for surveillance, border protection and law enforcement.

The ability to rapidly repair and maintain these systems would improve agencies’ responsiveness and availability of capabilities, ensuring that they are always equipped to respond to emerging threats. Darwin could thus play a greater role in Australia’s broader security architecture, providing reliable, homegrown support to key domestic and international partners.

From a commercial perspective, establishing an MRO facility in Darwin would be commercially viable and a boon for local businesses.

With the growing demand for uncrewed systems in industries such as liquefied natural gas (LNG), telecommunications and mining, establishing a local MRO facility would significantly reduce the reliance on overseas service providers. This would cut transport costs and ensure faster turnaround of repairs, improving the operational efficiency of these industries.

It would also create a thriving commercial ecosystem around uncrewed systems in the Northern Territory. Local businesses would be able to engage with the growing global market for uncrewed systems, contributing to job creation and the region’s economic growth.

For this MRO facility to be commercially successful, it should be designed as a multi-use facility, capable of supporting not only defence and government sectors but also commercial enterprises. This approach would ensure financial sustainability through a diversified revenue stream.

Partnerships with commercial operators in the LNG, mining, and telecommunications sectors could provide steady demand for services.

Moreover, collaborations with international partners—such as the United States, Japan and other Indo-Pacific nations—could provide further opportunities for industry growth, turning Darwin into a regional centre for uncrewed system innovation and service.

Such collaborations could include joint research and development projects, knowledge sharing and training programs, further enhancing the facility’s global relevance.

Establishing an MRO facility in Darwin would have significant strategic, economic and operational benefits. It would enhance Australia’s defence readiness, reduce its reliance on overseas maintenance services and foster closer collaboration with key regional partners. A local MRO facility would strengthen Australia’s ability to respond to threats, contribute to the security of the Indo-Pacific region and support industries that rely on uncrewed systems.

By capitalising on Darwin’s strategic location, existing infrastructure and growing importance in regional security, Australia can establish a world-class facility that meets its future needs and reinforces its role as a key player in the Indo-Pacific.

Darwin is key for undersea data links. We must promote their resilience there

Australia needs further investment into Darwin’s digital infrastructure to leverage the city’s proximity to Asia and support the resilience of international data flow through subsea cables.

Actions should include establishing an office to coordinate industry and government agencies, and it should build a substantial capability in Darwin to repair cables.

The importance of acting is underscored by Google’s November statement that it would lay a data cable from Darwin to Singapore via Christmas Island and by ongoing joint efforts by Australia, the United States and Japan to increase connectivity in the Pacific.

As subsea links, such as the existing Darwin-Jakarta-Singapore Cable, become Australia’s digital lifelines, their security and resilience become paramount. Disruption to them would have profound consequences for both Australia’s economy and national security.

Darwin’s role in the Indo-Pacific digital ecosystem is growing ever faster, making the city increasingly central to global data flows. Vulnerabilities come with dependence on such infrastructure. Incapacitation of these cables—whether through physical damage or cyber threats—would severely affect Australia’s economy, security, and geopolitical standing.

The government’s current approach to managing subsea cable security lacks the coordination needed to address the growing challenges in this space. With multiple agencies involved, from the Department of Infrastructure to the Australian Communications and Media Authority, Australia needs a more unified and proactive approach to safeguarding these assets.

Given the national security stakes, Australia must establish a dedicated domestic subsea cable coordination unit to oversee construction, maintenance and security. This unit should serve as a clearinghouse, working closely with key government stakeholders, telecommunications regulators and private sector players—including major tech firms, such as Google and Meta. By integrating their expertise, the unit could ensure that subsea cables were shielded from physical and cyber threats, coordinating national security efforts and fostering a unified response to emerging risks.

As Darwin continues to evolve as a data hub, Australia’s capacity to swiftly repair damage to its subsea cables is becoming increasingly critical. To maintain resilience, the government must establish a local repair hub. This includes building up domestic repair capabilities, which could be achieved through partnerships with international cable operators or by developing local expertise within the Northern Territory. A dedicated repair ship, staffed with a rapid-response team based in Darwin, would be invaluable, ensuring that cable damage was addressed quickly to minimise disruption. This approach would further strengthen Australia’s position as a reliable player in the global digital infrastructure arena.

To support this growing digital infrastructure, Darwin’s physical and digital capabilities must also be scaled up. This requires robust terrestrial backhaul connections and investment by large cloud-service providers in world-class AI data centres.  We also need a regulatory framework that supports the increasing volume of data while addressing potential physical and cyber threats.

The Northern Territory offers geological stability and an advantageous position for connections to Singapore, itself an important node in the global submarine cable network. These advantages make it an ideal place for increasing Australia’s overall telecommunications and subsea cable resilience by diversifying submarine cable landings from clogged areas like Sydney and existing areas like Perth.

As the volume of data flowing through the region rises, so too must the capacity to handle it securely and efficiently. Strong, resilient infrastructure will not only bolster Australia’s own security but position the country as a reliable alternative to higher-risk regions. It will also attract investment and foster deeper international partnerships, particularly with allies such as the United States and Japan, who are already deeply engaged in securing subsea cable infrastructure.

Australia must also step up its role in the global dialogue surrounding subsea cable security. Given the interconnectedness of these cables and their importance to international trade and security, it cannot afford to act in isolation. Active participation in global initiatives is essential. For example, in September, Australia endorsed the New York Statement on Undersea Cables, which calls for international cooperation to safeguard the links.

By engaging in these discussions, Australia can share insights on emerging threats, establish best practices for protection and help shape global responses to subsea cable disruptions. This leadership would further cement Australia’s position as a key partner in global digital infrastructure security.

The time for action is now. Australia’s government must move decisively to secure the subsea cable infrastructure of the Northern Territory, ensuring long-term resilience and reliability.

With its strategic location in the Indo-Pacific, Darwin is poised to be a cornerstone of global digital connectivity, not only serving as a gateway for Australia but also reinforcing regional security and economic stability. By securing subsea cable infrastructure, Australia will pave the way for a secure, resilient and interconnected future, reinforcing both its national interests and its partnerships with key allies.

Guidance for critical minerals policy from ASPI’s Darwin Dialogue 2024

Critical minerals are a focal point of international contention in an increasingly fracturing international system. These minerals underlie competition across civil and defence sectors and promise economic opportunity throughout their supply chain. Furthermore, they are vital to the clean energy transition, with minerals needed for electric vehicle batteries, solar panels and even wind turbines. Yet, their supply chains face extensive challenges.

Since ASPI’s inaugural Darwin Dialogue in 2023, Australian and foreign governments have begun implementing industrial policies to support domestic growth in critical minerals and downstream industries.

The Darwin Dialogue 2024 brought together high-level government representatives of Australia, the US, Japan and South Korea and senior representatives of other nations, academia and think tanks, held over two days in April 2024. It assessed the rise of industrial policies and discussed the next policy steps to achieve diversified supply chains, unlock investment in industry, protect industry from geopolitical risks, and deepen market environmental, social and governance considerations.

Australia’s critical mineral policy is principally shaped by the Critical Minerals Strategy, released in December 2023, and the Albanese government’s flagship industrial policy, Future Made in Australia, announced ahead of the Federal Budget 2024-25. It is further backed by close collaboration with state governments.

Implementing Future Made in Australia comes with significant costs, but industrial policies help navigate our geopolitical environment—especially in highly exposed sectors such as critical minerals.

In many respects, the rise in industrial policies is a targeted response to China’s dominance across supply chains. But it is also an attempt to stay competitive against policies implemented by allies—principally the United States’ dryly named Inflation Reduction Act (2022).

However, concerns remain around the strategic planning behind a Future Made in Australia. The government must stick to a clear, results-oriented strategy, making targeted investments to build a viable interconnected sector in collaboration with states and territories. Currently, there is a risk that investments could be process-oriented and perhaps disconnected.

Industrial policy is a double-edged sword: it protects and promotes domestic industry while also picking winners and potentially further fracturing the international trade order. It must be handled with caution. We must be careful about where we compete, where we cooperate and, importantly, with whom we do either.

Governments naturally focus on domestic industries and opportunities and selectively engage partners, but no single nation can build the necessary mineral supply chains alone. At the Darwin Dialogue 2024, there was broad consensus that national and transnational government interventions are unavoidable in the critical minerals sector—but they must be implemented carefully.

Overly focusing on domestic concerns instead of working internationally obscures pressing, near-existential challenges for the critical mineral sector. Current supply chains are insecure, and projected demand is likely to far outstrip supply of many critical minerals. This could constrain energy transition and building defence capabilities.

Rapid expansion of critical minerals production is needed. To achieve that, Australia and its allies must harmonise policies and build shared supply chains, rather than build domestic competitors that may cannibalise one another. Some competition is needed and unavoidable, but it must be proportionate.

Australia’s policy framework must work to attract new domestic and international investment sources, particularly since the Foreign Investment Review Board is rightly blocking Chinese investment into critical minerals on national security grounds. Policy options include unlocking superannuation fund investment, maximising use of free trade agreements and increasing demand by building joint stockpiles. We must also protect industry from politically driven price risks, noting that political risks are remarkably difficult to project or hedge against as they are external to the market.

Notably, unlocking new investment and developing new supply chains is not about bifurcating global trade or alienating any one nation from the supply chain. Doing so would be neither effective nor realistic. Rather, Australia and its allies must strive towards diversifying supply chains away from any singular, concentrated source or destination.

Furthermore, in developing these supply chains, Australia and its allies must maintain and extend high standards of environmental, social and governance performance. This means limiting harmful impacts of energy transition and building business models that are resilient to geopolitical or domestic social-licence risks over the medium to long term.

ASPI’s report from this year’s event, Darwin Dialogue 2024: Triumph through Teamwork, offers 11 key policy recommendations for government and industry to evolve Australia’s critical mineral policy framework.

It identifies ways to deepen minilateral cooperation with the US, Japan and South Korea across government and industry, secure new streams of funding for Australian industry, increase the number of graduates from Australian universities in fields related to critical minerals mining and processing, and improve market environmental, social and governance considerations.

Northern Australia doesn’t get enough political attention. We can fix that

Northern Australia comprises half of the nation’s landmass, is rich in natural resources and offers a gateway to the Indo-Pacific—yet it is grossly underappreciated in federal decision-making, with the result that its potential is largely untapped.

To help correct this, northern Australia’s federal politicians should establish a cross-parliamentary group committed to finding a bipartisan approach that prioritises the region’s interests.

Northern Australia is an asset for defence, trade and energy security. Its proximity to Asia and the Pacific makes it a key link in Australia’s relationship with its neighbours. If Australia is serious about strengthening its role in the Indo-Pacific, it must invest more heavily in the infrastructure, services and political representation of its northern regions.

Only 1.35 million people, 5.2 percent of Australia’s population, live in northern Australia, so it is represented by just 12 members of the House of Representatives and 26 senators. The southern states, with concentrated populations and urban centres, dominate federal politics. While some northern Australian politicians hold important committee positions, such as those on the Joint Select Committee on Northern Australia or the Northern Australia Infrastructure Facility, the concerns of other, far more numerous members of parliament (MPs) limit their influence.

Northern Australia’s geographic and economic significance remains a peripheral concern for too many southern-focused policymakers. But it deserves far more attention in Canberra’s corridors of power. This imbalance in political attention is a critical issue. It’s a matter of national strategy.

Northern Australia needs its political voice heard loudly and clearly in parliament.

An answer would be to establish a Parliamentary Friends of Northern Australia group. Such a cross-party parliamentary group should be dedicated to advancing the interests of northern Australia across all sectors, including infrastructure, regional development, indigenous affairs, agriculture, resources and national security. It could provide a platform for MPs and senators, regardless of party affiliation, to collaborate on policy initiatives that directly benefit northern Australia, raise the profile of its challenges and push for greater regional investment. Importantly, it would offer a dedicated space for northern Australian representatives to amplify the specific needs of their electorates and push for more significant funding and legislative action.

The absence of such a parliamentary group, has contributed to northern Australia often being treated as an afterthought in the national political debate. Too often, policies developed in Canberra overlook the unique challenges northern communities face: lack of essential infrastructure, a need for more sustainable economic development or underinvestment in services and education. A parliamentary friends group would enable northern Australia’s politicians to push for urgent reforms. This would include securing more funding for essential infrastructure projects, such as transport corridors, renewable energy initiatives and regional healthcare services, which are all key to the region’s growth and prosperity.

Beyond this, the federal government must take action to realise northern Australia’s economic potential. The region is a powerhouse of natural resources—minerals, energy and agriculture—contributing significantly to Australia’s GDP. However, its infrastructure is underdeveloped and the lack of connectivity across the vast region hampers its economic output.

Investment in critical infrastructure is essential, particularly in remote areas where the need for improved roads, ports and communications infrastructure is urgent. Fostering a more diversified economy in northern Australia—one less reliant on mining and more focused on renewable energy, technology and tourism—would help the region become more resilient to global economic shifts.

These measures would also enhance national security and provide economic opportunities for the region, particularly in terms of jobs and business development.

Creating a Parliamentary Friends of Northern Australia group would enable MPs and senators from the region to advocate for its needs, ensuring that it was no longer sidelined in the national political discourse. The federal government must correct the imbalance between northern Australia’s importance and the political attention it receives. It must invest in essential infrastructure and work with local communities to unlock northern Australia’s full economic, social and strategic potential.

It’s not just inflation. Contracting practices are also stifling construction

Inflation is ganging up with long-standing problems in our contracting and procurement systems to stifle construction, innovation and ultimately our economic future. 

While the Reserve Bank fights inflation, the government must lead reform in procurement practices, with the aim of ensuring that more potential contractors can bid for major projects. Indeed, this period of exceptional difficulty for project contracting should be the motivation for addressing inefficiencies in contracting that have damped construction activity for too long. 

High inflation is not merely making life uncomfortable for people generally. It is also shifting investment dynamics, potentially damaging economic performance and competitiveness. The 40 percent surge in construction costs since the onset of the Covid-19 pandemic has dire implications for public and private sector investment. It threatens our infrastructure projects and thereby robs us of productivity gains and economic growth. 

The problem is acute in northern Australia, where construction costs have always been high and in the past few years have risen even faster than in the rest of the country. 

Inflation that outstrips growth in public finances diminishes the government’s ability to fund crucial infrastructure projects. Meanwhile, private industry, wary of somewhat unpredictable cost rises, must set higher elevated return thresholds, leading it to shy away from investment. 

This not only slows or prevents construction of facilities but also stifles economic growth. If infrastructure isn’t built, industries that need it won’t expand. 

This relatively recent inflation problem is overlayed on the stifling effect of long-standing contracting practices and procurement systems. 

Consider the example of government contracts. Often, governments engage architects and engineers to create detailed project designs then, in the tender phase, require contractors to warrant the buildability of the designs. This unreasonably gives bidders only a few weeks to evaluate a year’s worth of design work.  

The result? Many bidders inflate their prices to account for the uncertain risks; other companies simply choose not to bid. The result is less competition, which, in turn, drives prices higher, adding to inflation. 

Prerequisites imposed on contractors can also diminish competition. For instance, mandating unusually high levels of professional indemnity insurance may deter smaller subcontractors from participating in a project, again leading to fewer bids and higher costs. Punitive liquidated damages clauses further add to the financial burden and, again, compels bidders either to raise their pricing or withdraw from the tender process. 

The loss of competition has another effect: firms under less market pressure are less likely to innovate. And absence of small firms from projects is particularly damaging, because they are the greatest source of innovation. 

The complexities of the US Department of Defense’s contracting approach add yet another layer to this challenge. By favouring US firms and imposing compliance requirements that align with American requirements for lodging bonds to guarantee work they effectively shut many Australian companies out of lucrative opportunities. This not only limits the competitive field but also constricts the available talent pool, ultimately compromising the quality and efficiency of public works. 

Yet there is an opportunity here. The extraordinary additional stress on the major-projects sector created by high inflation should create the motivation for us to now reassess and refine contracting practices. A strong effort from the federal government to understand and mitigate the hidden costs associated with specific contractual clauses could revitalise competition, help mitigate immediate inflation and create permanent efficiencies. 

Moreover, by fostering an environment where a diverse range of contractors can compete, we may very well stimulate innovation. 

We need decisive leadership from policymakers. The Australian government must actively engage industry stakeholders in a dialogue about these issues, prioritising transparency and flexibility in contracting practices. This means re-evaluating the criteria that determine bidder’s eligibility for projects and making necessary adjustments to ensure that more companies—especially smaller, innovative firms—can be involved. 

Moreover, procurement processes should be streamlined to reduce the burdensome requirements that deter participation. By creating a more inclusive framework, we can not only enhance competition but also better position Australia for long-term economic growth. 

Northern deterrence demands full use of civilian infrastructure

Australia’s National Defence Strategy presents a central challenge to the ADF: deterring adversaries from projecting power through our northern approaches. To do this effectively, the ADF must maximise use of civilian infrastructure, particularly in northern Australia, where the local economy cannot always sustain necessary facilities alone.

A strong example of what needs to be done is making the most of Horn Island, in the Torres Strait.

In the 1980s and 1990s, the ADF mapped and assessed infrastructure across northern Australia. This initiative included extensive aerial surveys, satellite imagery and ground assessments, producing detailed maps of roads, bridges, ports, fuel storage, communication networks and more. Collaboration with government agencies and local stakeholders was key to ensuring accurate and valuable data, bolstering military readiness and community development.

However, by the late 1990s, shifting defence priorities and a focus on joint operations reduced these critical assessments, leaving gaps in our understanding of the infrastructure landscape that must now be addressed.

This landscape is rapidly changing with government and private infrastructure investment in northern Australia. And some old facilities—like those in Weipa, where dredging of the port will cease—are being decommissioned as commercial operations shut down, while others are nearing the end of their operational life.

Historically, Horn Island was a key military outpost, with two runways, ammunition storage and defensive installations. Today, it mainly supports regional commercial flights under the management of the Torres Shire Council. Its proximity to Papua New Guinea—makes it an ideal location for a forward military base.

Horn Island already has Jet A-1 fuel, commonly used by the RAAF, and a bulk fuel storage capacity of 600,000 litres at its pier. This infrastructure could be expanded to ensure the island remains self-sufficient during prolonged military operations, reducing logistical dependency that could hinder operational effectiveness and enhancing local resilience.

One of Horn Island’s most significant advantages is its ability to improve the capabilities of Cairns and Townsville within a unified northern defence posture. While Cairns serves as a naval hub for patrol boat operations, Horn Island could act as a forward support base, extending these vessels’ operational range and endurance. Using Horn Island for resupply and maintenance, patrol boats from Cairns could sustain longer missions in the Torres Strait and other northern waters. Its airfield could also extend the ranges of both crewed and uncrewed aircraft.

Maintaining Horn Island’s civilian airfield is commercially justified, but enhancing it may not be. The types of infrastructure that Defence could use for military purposes would no doubt also bolster community resilience across the Torres Strait Islands. But who would pay for such improvements?

The issue applies to much of northern Australia’s infrastructure. The ADF cannot reasonably be expected to alone pay for infrastructure development throughout northern Australia.

As a first step, the ADF must recommence systematic data collection on the region’s infrastructure. A comprehensive understanding of the infrastructure landscape is essential for ensuring operational readiness and resilience. By mapping existing facilities and assessing their capabilities, Defence can identify gaps and determine how best to enhance the strategic use of these assets.

Regular use of such infrastructure will not only enhance the ADF’s readiness but will also contribute to the viability of essential services in northern Australia. These benefits reinforce the argument for investing in upgrades, ensuring that Defence commitments align with local community needs.

The Australian government must adopt a holistic approach to the ADF’s requirements, prioritising ongoing maintenance of critical infrastructure that can support both military and civilian demands, especially in areas where commercial viability is limited. Such foresight is not merely a matter of defence strategy; it is an investment in the social and economic fabric of northern Australia.

By leveraging civilian infrastructure, Australia can significantly enhance its military capabilities and deterrence. The time for action is now, and a collaborative effort among Defence, government and local communities is required.

Australia’s space future in the north

Australia is a lucky country when it comes to the potential opportunities for space launch. Its geography means that sites close to the equator, which are sparsely populated and enjoy stable weather patterns, are ideal for establishing a sovereign launch capability. Launching close to the equator enables a rocket to gain velocity from the earth’s rotation, making it less expensive to get a payload into equatorial orbit. Australia should not waste this competitive advantage.

In my new ASPI report, Australia’s north and space, released today, I discuss the importance of northern Australia to our space future. Both the Northern Territory and Queensland are well placed for launches, with two major sites. The Arnhem Space Centre at Nhulunbuy, near Gove in the NT, and Abbot Point at Bowen in Queensland are being established to derive maximum benefit from Australia’s geography. Others have been suggested, including a proposed launch site near Weipa in northern Queensland known as Space Centre Australia.

The report also examines Western Australia’s role in space. The state’s south coast favours launch into polar and sun-synchronous orbit, and a proposed privately owned launch site at Albany is being promoted as a future option by WA Spaceport.

The report notes that South Australia is well placed for launch into polar and sun-synchronous orbit, and Southern Launch is finalising its site at Whalers Way to support orbital launches.

All three northern states are also well placed to support space activities besides launches, including ground facilities such as spacecraft telemetry, tracking and control, space domain awareness, and payload development and integration. Co-location of ground elements close to launch sites in space hubs makes great sense. The development of such hubs will help the commercial space industry to expand and reduce the length of supply chains.

What could emerge is a complete space ecosystem spanning from design and fabrication of launch vehicles and satellites, through to payload integration, launch and post-launch support of space activities. That brings the potential of ‘space coasts’—where commercial space activity is concentrated and enjoys rapid growth—as the launch market expands to service megaconstellations of satellites in earth orbit, as well as lunar logistics.

The report begins by looking forward 20 years, suggesting a future scenario where Australia’s space sector is contributing to establishing a permanent human presence on the moon, with Australian astronauts on the lunar surface. In this scenario, launch sites across the country could support humanity’s future in space with regular launches and a flourishing space industry near them. It’s a future that goes beyond the dreams of the early leaders of the Australian space industry—and the plans of the Australian Space Agency—but it’s within our grasp.

That positive look forward presents a starting vision of where Australia as a nation should aim to be in space. However, there are challenges ahead if we are to achieve that vision. Without a national space policy, negative competition could develop between states rather than national coordination. The absence of a national space strategy must be addressed. The report lays the foundations for two follow-on papers—one on a national space strategy and the other making the case for space—to be released by the end of 2023.

The report also notes worrying cuts in government funding for space, most notably the cancellation of the national space mission for earth observation. That, combined with cutbacks in funding for space projects in the 2023–24 budget, and the lack of progress on a national space policy, is causing concern within the space sector about the risk of momentum being lost. It’s vital that Australia’s space community work together to avoid that outcome. Failure to do so will see us slip back into dependency as that positive future fades away.

The report notes the importance of Defence’s focus on space as an operational domain and argues that a sovereign launch capability is necessary to allow Australia to share more of the burden in orbit and strengthen space deterrence through increased resilience and assured access. Australia must do more than simply provide ground-based support of allied space capabilities. It must directly increase its own role in space by expanding space domain awareness and, most importantly, establishing a sovereign launch capability.

A sovereign launch capability will avoid the risks of overdependency on foreign capabilities and ensure responsive space access for both Australia and its allies. It will also allow for quick augmentation, and if necessary, reconstitution, of space capability in a conflict.

The commercial space sector, the Australian Space Agency, Defence and the scientific community must together present a coherent and comprehensive case for space to government. This will require the resumption of work towards a national space policy, to be completed within the current term of government. The goal should be one coherent strategy that brings together commercial, civil and defence aspects of Australian space to leverage the country’s natural advantages and that places launch at the centre of national space activities.

A positive space future is out there for us, but it will take all stakeholders to make it happen. Australia can continue to be a rising and important space power, and the momentum gained in recent years need not be lost. The place to start is in the north, and this country must move forward to launch into that future.