Super sector to accelerate critical mineral investments

The Association of Superannuation Funds of Australia (ASFA) has signed a statement on behalf of Australia's super sector to accelerate investments in critical minerals projects in G7 countries.

The statement was formally adopted by a meeting of the G7 and partner countries' top companies, financial institutions, and industry associations in Paris on June 10 at the Critical Minerals Investment Forum.

The statement calls for greater mobilisation of private capital to build resilient and diversified critical minerals supply chains and for stronger coordination between public and private actors.

The 39 signatories include Airbus, BNP Paribas, Goldman Sachs and JP Morgan among others.

"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," ASFA chief executive Mary Delahunty said.

She said the forum 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," she said.

Delahunty noted resilient critical minerals supply chains will ultimately depend on the ability to mobilise large-scale, patient capital for long-term projects.

"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," she added.

Delahunty said Australia was the only country at the table bringing the pension sector directly into the conversation and ASFA will continue to work with the government and international counterparts to take this work forward.