Australia’s superannuation sector has backed a global push to accelerate investment in critical minerals projects, with the Association of Superannuation Funds of Australia (ASFA) becoming the only pensions body worldwide to sign a G7-led statement on the issue.
The Statement on accelerating investment for critical minerals projects in G7 countries and like-minded partners was formally adopted in Paris on 10 June by 39 companies, financial institutions and industry associations at the Critical Minerals Investment Forum.
It focuses on building standards-based markets, promoting innovation, mobilising capital and investing in partnerships.
Hosted by French economy minister Roland Lescure under the French G7 Presidency ahead of this week’s G7 leaders’ summit in Évian, the forum focused on mobilising capital to support resilient and diversified critical minerals supply chains.
ASFA chief executive, Mary Delahunty, attended the forum and signed the statement on behalf of Australia’s $4.5 trillion superannuation sector.
The statement called for greater mobilisation of private capital and stronger coordination between public and private stakeholders, including expanded use of equity and blended finance instruments, long-term offtake agreements and increased risk-sharing mechanisms supported by G7 governments.
Delahunty said Australia was uniquely positioned at the discussions through the direct involvement of its pension sector.
“Australia was the only country at the table bringing the pension sector directly into the conversation.
“This is a topic which needs the perspective of the longest-term institutional investors taken into account from the outset, because resilient critical minerals supply chains – and the security they offer countries like those in the G7 and Australia – will ultimately depend on the ability to mobilise large-scale, patient capital for long-term projects,” Delahunty said.
She said discussions needed to move beyond identifying capital requirements and address the practical factors influencing investment decisions.
“From a superannuation perspective, the conversation needs to be around how capital is actually allocated, beyond the diplomatic community identifying that capital needs to be allocated. That means addressing things like the need for project transparency, strong governance, and appropriate risk-adjusted returns.
“Too often, these discussions focus on policy ambitions and supply-side development without taking into account the nuts and bolts that capital needs to build an investment case – in this case, to support the investment of working Australians’ hard-earned retirement savings.”
Delahunty said policymakers had been urged to consider new approaches to support investment in the sector.
“As the G7 leaders meet this week, the Forum has made clear to policymakers that innovative approaches are needed to answer the critical minerals questions their governments need to answer. This could include blended finance, public-private partnerships, offtake agreements, and new mechanisms to help de-risk early-stage critical minerals projects.
“ASFA will continue to work with the Australian Government and international counterparts to take this work forward,” Delahunty said.
