EU trade chief eyes investment in Australian resources projects

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By Melanie Burton

MELBOURNE (Reuters) -EU Trade Commissioner Maros Sefcovic said on Friday he had discussed with Australia’s Resources Minister Madeleine King how best to invest in Australian resources projects, through equity stakes, long-term off-take agreements or joint investments.

Sefocvic spoke with King on Thursday as part of a trade delegation to Australia, as the two countries seek to hammer out a free trade agreement that may include supply of critical minerals.

“We did the first such selection of the projects where we would declare our official interest. I mean, that list should be published very, very soon,” he said.

The EU was learning from Japan’s handling of its supply security of critical minerals, by strategically investing in mines and processing plants, he said.

“And we want to go in that direction as well.”

“We in Europe, we paid so much for dependencies over the last years. It started with Russian oil and gas. We know how much we overpaid when we had to diversify very quickly. We see how we are squeezed now on chips and some critical raw materials.”

In terms of an agreement between Australia and the EU, there was “more momentum,” Sefcovic told reporters in Melbourne, adding he expected another round of talks early next year.

A previous attempt to reach a trade deal failed in 2023, with Canberra wanting more ability to sell farm goods in Europe. The EU is seeking greater access to Australian critical minerals and lower tariffs on manufactured goods.

(Reporting by Melanie Burton in Melbourne and Renju Jose in Sydney; Editing by Sonali Paul and Kevin Buckland)