Australia and Japan sign agreement on critical minerals and energy

Australia and Japan have agreed to intensify their 'cooperation in energy and minerals. The agreement was reached on Monday, when the Japanese Prime Minister Sanae Takaichi and his Australian counterpart Anthony Albanese met during a three-day visit to Australia.

The two countries signed a historic defence agreement last month and agreed to enhance the energy, food, and essential minerals supply chains.

Albanese stated in a press release that "Australia and Japan have taken action to protect their economies from future shocks and uncertainty".

By working together, we can achieve more secure and resilient supply chains for Australian and Japanese consumers and businesses now and into the future.

Australia is Japan's biggest market for liquefied gas and provides about one-third of its energy.

Both countries have tried to boost?energy supplies as tensions in the Middle East choke trade. Japanese companies have also been closely monitoring developments in the Australian gas industry. This includes the threat of strikes at major gas facilities and the increasing political pressure for higher taxes on exports.

Albanese, who spoke on Monday, said that "like Japan we are concerned about disruptions in the supply of refined petroleum products and liquid fuels."

Australia will also provide up to A$1.3billion (937 million dollars) in support to vital mineral projects with Japanese involvement. This could allow Japan to be supplied with resources such as gallium, graphite and rare earths.

Takaichi arrived from Vietnam in 'Australia, where she spoke about energy and essential?minerals. She also urged Southeast Asian countries to strengthen regional supply chains.

Japan has signed contracts to launch a?A$10 billion ($7billion)?deal with Australia for the supply of?warships. This is Tokyo's largest military sale since it lifted its ban on exports.

(source: Reuters)