AUKUS Pillar 2: The Strategic Path Forward – Insights from Matt Ort

In a recent discussion featured on the BENS website, Capt. Matt Ort (ret), Managing Director at Vaxa Bureau and former U.S. Naval Attaché to Australia, provided a comprehensive analysis of AUKUS Pillar 2 and its implications for the future of defense collaboration among Australia, the United Kingdom, and the United States. As the AUKUS agreement nears its third anniversary, Ort’s insights shed light on the critical elements needed to ensure the success of this trilateral partnership. This blog post summarizes the key points from the interview, emphasizing the strategic importance of AUKUS Pillar 2.

Vaxa AUKUS

The Interdependence of Pillars 1 and 2

Matt Ort highlights that the success of AUKUS Pillar 2, which focuses on advanced defense technologies such as AI, hypersonics, and electronic warfare, is closely tied to the outcomes of Pillar 1. Pillar 1’s focus on nuclear-powered submarines has garnered significant political and financial investment, particularly from Australia. Ort argues that if Pillar 1 fails to meet expectations, it could negatively impact the broader goals of Pillar 2, making it crucial for both pillars to succeed in tandem.

Establishing a Trilateral Defense Framework: Challenges and Opportunities

Ort emphasizes the need for a robust and adaptive trilateral defense framework that aligns the strategic objectives of all three nations. He discusses the bureaucratic and regulatory challenges that must be overcome to facilitate seamless technology sharing and collaboration. This includes aligning security clearances across the three countries and addressing legislative barriers that hinder the free flow of knowledge and defense technology.

Industry Uncertainty and the Need for Clear Guidance

One of the significant challenges facing AUKUS Pillar 2 is the uncertainty within the defense industry. Without clear directives from the governments involved, industry leaders find it challenging to make informed investment decisions. Ort suggests that to overcome this uncertainty, a more transparent and coordinated approach between government and industry is necessary, ensuring that the defense sector can effectively contribute to AUKUS’s long-term goals.

A Vision for the Future: Advancing Defense Capabilities

Looking ahead, Ort envisions a future where AUKUS Pillar 2 enables the development of cutting-edge defense capabilities through advanced manufacturing techniques and secure supply chains. He underscores the importance of addressing the bureaucratic inertia that often slows down progress and calls for a unified sense of urgency across all stakeholders to ensure that AUKUS achieves its full potential in strengthening trilateral defense cooperation.

Conclusion

Matt Ort’s insights offer a critical perspective on the future of AUKUS Pillar 2 and its potential to reshape defense collaboration among Australia, the UK, and the US. As AUKUS approaches its three-year mark, the success of this initiative will depend on the ability of all involved parties to overcome regulatory challenges, provide clear guidance to industry, and maintain a unified focus on advancing defense capabilities. For a more detailed exploration of these insights, read the full interview on the BENS website.

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Private Equity for National Security

Leveraging Private Equity for National Security: Insights from Capt. Matt Ort (ret)

In the latest episode of the Vaxa Bureau Intelligence Optimised podcast, the discussion centred on the pivotal role that private equity and venture capital play in bolstering Australia’s defence and security infrastructure. Industry expert Capt. Matt Ort (ret)  provided valuable insights into how these financial strategies can accelerate the development of critical infrastructure, particularly in the context of Australia’s evolving defence needs. This blog summarises the key points discussed, focusing on the importance of private investment in enhancing national security.

 

The Strategic Role of Private Equity in Defence

As emphasised in the podcast, private equity is set to revolutionise the development of defence and security infrastructure in Australia. Significant activity is expected in the northern regions of Australia, where military bases are in dire need of upgrades. The traditional reliance on government funding, often slow and bogged down by bureaucracy, is insufficient to meet the pressing demands of national security. Private investment offers a more efficient and effective path forward, enabling faster development and deployment of critical infrastructure.

Learning from the U.S. Experience

Drawing on his extensive experience in the U.S. defence sector,Capt. Matt Ort (ret) highlighted how American private equity firms have successfully collaborated with the government to enhance military capabilities. A notable example is Cap Zone, a company leveraging government-created opportunity zones to develop what is set to become one of the world’s most advanced shipyards. This initiative demonstrates the significant potential of private investment in defence infrastructure and underscores the importance of strategic public-private partnerships.

The Importance of Maritime and Base Infrastructure

Australia’s recent Defence Review marks a strategic shift from a policy of deterrence to one of denial, placing renewed emphasis on maritime capabilities. Given Australia’s geographic isolation, maritime infrastructure, including shipyards, is crucial for maintaining national security. However, the conversation also highlighted the critical need to refurbish and modernise military bases, particularly in northern Australia. These bases are vital for missile defence and power projection, making their upgrade a top priority.

Challenges and Opportunities in the Australian Market

While there is a strong appetite for U.S. private equity and venture capital investment in Australia, the podcast shed light on the challenges associated with such cross-border investments. Issues like technology transfer, classification, and the alignment of acquisition models between the two nations pose significant hurdles. Nevertheless, the Australian government’s recent initiatives to attract international capital, especially through the Australian Strategic Capability Accelerator, are promising steps forward.

The Future of U.S.-Australia Collaboration

The discussion concluded with an exploration of the future of U.S.-Australia collaboration in defence and security. With significant opportunities on the horizon, particularly in emerging technologies like hypersonics and AI, the importance of long-term investment strategies cannot be overstated. As both countries continue to navigate the complexities of international cooperation, private equity’s role in shaping the future of national security infrastructure will undoubtedly expand.

Conclusion

The latest Vaxa Bureau podcast offers critical insights into the evolving role of private equity in national security. By learning from the U.S. experience and fostering closer collaboration between the two nations, Australia can significantly enhance its defence capabilities. As the conversation continues, the importance of strategic private investment in national security will become even more apparent, ensuring that Australia’s infrastructure is prepared to meet future challenges.

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At Vaxa Bureau, we support leaders in critical industries to advance their knowledge, improve systems, and make informed decisions. If you have any questions or want to learn more about how we can help, reach out today.

AI-Enabled Uncrewed Systems

Toll Aviation and Shield AI: Leading the Charge in Uncrewed Systems for Defence and Emergency Response

In a recent interview, Colin Gunn, CEO of Toll Aviation, highlighted the increasing importance of uncrewed systems in the defence and emergency response sectors, especially in the Indo-Pacific region. Toll Aviation, well-known for its comprehensive aviation services, has broadened its scope to include uncrewed systems. This strategic shift aims to utilise these technologies for various purposes, including defence, emergency medical response, and disaster resilience. This blog delves into Toll Aviation’s transition towards uncrewed systems, the development and deployment of the VBAT platform, and its implications for defence and emergency response operations.

From Helicopters to Uncrewed Systems: A Strategic Pivot

Toll Aviation has a rich history of helicopter firefighting and aeromedical services. However, the company is now shifting focus towards uncrewed systems to improve operational efficiency and safety. This strategic move was necessitated by changing market conditions and technological advancements. Uncrewed systems, like the VBAT platform, are becoming a crucial part of Toll Aviation’s offerings. The VBAT system, notable for its vertical takeoff and landing capabilities, offers unique advantages in challenging environments, making it ideal for various applications, including border protection, environmental monitoring, and emergency response.

Enhancing Aeromedical Operations with Uncrewed Systems

One of the main drivers for adopting uncrewed systems was to enhance aeromedical operations. In difficult terrains such as the Blue Mountains and other remote areas, uncrewed systems can provide essential support in search and rescue missions. They allow for aerial surveillance and communication with ground teams, thus improving the efficiency and safety of operations. Toll Aviation plans to equip each of its helicopters with a drone, enabling a more versatile response in challenging conditions. This integration is expected to enhance patient outcomes and improve the safety of paramedics during rescue missions.

Disaster Resilience and Uncrewed Systems

Beyond aeromedical applications, Toll Aviation sees significant potential for uncrewed systems in disaster resilience. These systems can deliver vital information during natural disasters like bushfires and floods, providing real-time data on affected areas. This capability is crucial for coordinating response efforts and ensuring the safety of both responders and affected communities. Toll Aviation envisions uncrewed systems as central to Australia’s disaster response infrastructure, complementing existing assets and offering a cost-effective solution for year-round readiness.

Collaboration with Shield AI: A Technological Leap

 

Toll Aviation’s partnership with Shield AI, a company specialising in artificial intelligence (AI) for uncrewed systems, represents a major advancement in the capabilities of these platforms. The VBAT system, developed in collaboration with Shield AI, integrates cutting-edge AI technology, providing autonomous navigation and decision-making capabilities. This partnership aims to deliver enhanced situational awareness and operational flexibility, especially in defence and security applications.

Addressing Geopolitical Tensions and Border Protection

The VBAT’s advanced sensors, including synthetic aperture radar, allow it to detect vessels over wide areas, making it an invaluable asset for surveillance and monitoring activities. The system’s rapid deployability, supported by existing civil aviation approvals and production capabilities, ensures it can be quickly brought online to meet emerging threats or operational needs. This capability is crucial for addressing geopolitical tensions and unauthorised maritime arrivals in the Indo-Pacific region.

The Potential of Integration into Australian Defence and Security Operations

The VBAT’s integration into Australian defence and security operations highlights a broader strategy. This system can provide advanced surveillance and reconnaissance capabilities, essential for early warning and situational awareness in maritime operations. Its ability to operate in various environments, including launching from confined spaces on ships, makes it a valuable asset for defence and border security operations. Additionally, Toll Aviation’s efforts align with international defence strategies, such as the U.S. National Defence Industry Strategy and the AUKUS partnership, enhancing collective defence capabilities.

Operational Adaptability and Strategic Deployment

In the latter part of the discussion, the focus shifted to the operational adaptability and strategic deployment of the VBAT system, particularly in civil maritime defence and border protection roles. Toll Aviation, in partnership with Shield AI, has emphasised the VBAT’s capability to operate from various naval platforms, including the Arafura and Cape class vessels. This adaptability is crucial given these vessels’ operational constraints, such as limited deck space and the absence of onboard hangars. The VBAT’s design, which allows it to be easily stored and deployed from within a vessel, sets it apart from other systems that may require additional infrastructure like shipping containers for storage.

Supporting Local Industry and Enhancing Capabilities

Toll Aviation’s approach to integrating Australian technology and components into the VBAT demonstrates a commitment to supporting local industry while enhancing the system’s capabilities. The collaboration with companies like Sentient Vision, which provides advanced sensors, showcases how Australian innovation is being incorporated into a globally competitive platform. This integration of local innovations ensures that the VBAT remains at the forefront of technological advancement while supporting the national economy.

Flexible Deployment Models

Toll Aviation has expressed flexibility in the ideal operational model for deploying the VBAT, indicating a willingness to adapt to various ownership and operational structures. This includes commercially owned and operated models, government-owned systems operated by commercial entities, and hybrid models where Toll provides initial operational support and training, eventually transitioning full control to local agencies. This flexibility ensures that the VBAT can be effectively integrated into different operational contexts, maximising its utility and impact.

The Future of Uncrewed Systems in Defence and Emergency Response

The discussion also touched on the broader implications of advanced AI technologies in unmanned systems, referencing Shield AI’s achievements in using AI for autonomous operations in complex environments. The VBAT’s capability to operate in GPS-denied environments is particularly noteworthy, as it addresses a critical challenge faced by many unmanned systems in contested areas. In summary, the VBAT represents a state-of-the-art solution for both military and civil applications, capable of integrating advanced technologies and adapting to various operational contexts. Toll Aviation and Shield AI’s efforts to incorporate local innovations and provide flexible deployment models highlight their commitment to supporting both national and international security objectives.

Conclusion

Toll Aviation’s strategic expansion into uncrewed systems, particularly through the development and deployment of the VBAT platform, marks a significant milestone in enhancing Australia’s defence and emergency response capabilities. By leveraging advanced AI technologies and supporting local industry, Toll Aviation is well-positioned to lead in this evolving market. The VBAT’s adaptability, rapid deployability, and advanced capabilities make it a crucial asset in addressing emerging challenges in the Indo-Pacific region, ensuring that both civilian and military operations remain efficient, effective, and resilient

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At Vaxa Bureau, we support leaders in critical industries to advance their knowledge, improve systems, and make informed decisions. If you have any questions or want to learn more about how we can help, reach out today.

Australia’s Critical Minerals

The Strategic Importance of Australia’s Critical Minerals: Titanium and Zircon

Key Insights Ahead

 

Australia’s rich deposits of critical minerals, particularly titanium and zircon, play a vital role in global supply chains. These minerals are not only essential for various high-tech industries but are also integral to everyday products. Understanding their importance helps highlight Australia’s strategic position in the world economy.

 

Global Context and Supply Chain Dynamics

The global demand for critical minerals has surged due to geopolitical shifts and technological advancements. Events like the invasion of Ukraine by Russia have underscored the need for secure, stable sources of these minerals. This situation has prompted industries, especially in aerospace and defense, to seek more reliable alternatives.

For example, Boeing previously sourced 30% of its titanium from Russia. Disruptions in this supply chain have led to increased interest in Australian minerals, highlighting the strategic importance of these resources.

 

Australia’s Competitive Edge

Australia’s natural abundance of titanium and zircon gives it a significant competitive edge. These minerals are crucial in manufacturing a wide range of products, from aerospace components to household items like paint and ceramics. Titanium dioxide, derived from titanium, is essential for creating white pigments, while zircon is valued for its durability in ceramics.

Moreover, Australia has developed capabilities to process these minerals domestically. This local processing not only adds value but also reduces dependency on foreign facilities, ensuring a more secure supply chain.

 

Sustainable Mining and Local Processing

Sustainable mining practices are at the forefront of Australia’s strategy for critical minerals. Companies in Australia are not only extracting these minerals but also processing them locally. This approach ensures that the value addition happens within the country, aligning with both environmental and economic sustainability goals.

The availability of processing plants, such as the one in Brisbane, allows for local processing of titanium and zircon. This capability is crucial for maintaining control over the supply chain and choosing strategic markets for these minerals.

 

Expanding Applications and Future Prospects

The applications of titanium and zircon are expanding into emerging industries such as clean energy and advanced technologies. These minerals are essential for manufacturing electric vehicles, wind turbines, and smartphones. As global demand for these products grows, Australia’s ability to supply and process these minerals positions it as a key player in the global market.

The versatility of titanium and zircon underscores their critical importance. From paint and toothpaste to advanced aerospace and defense technologies, these minerals are indispensable.

 

Strategic Collaborations

Australia’s collaboration with allied nations is crucial for maintaining a stable supply chain. Countries like the United States and Japan are increasingly looking to Australia for secure mineral supplies, fostering international partnerships that enhance economic and strategic security.

These collaborations ensure that Australia can contribute to global supply chains while benefiting from shared technological advancements and market access.

 

Conclusion

Australia’s critical minerals, particularly titanium and zircon, are indispensable in various high-tech and everyday applications. Sustainable mining practices and local processing capabilities reinforce Australia’s position as a global leader in the critical minerals market.

Ongoing investment and innovation in this sector are essential as demand for these minerals continues to rise. Australia’s strategic importance on the world stage will only grow, emphasizing the critical role of these resources in shaping a sustainable and technologically advanced future.

 

 

Detailed Insights and Extended Discussion

The Role of Titanium and Zircon in Everyday Life

Titanium and zircon are not just used in high-tech industries; they also find applications in everyday products. Titanium dioxide is used in paints, coatings, and even toothpaste due to its excellent whitening properties. Zircon, on the other hand, is used in ceramics to improve their durability and resistance to wear and tear.

 

Geopolitical Implications of Critical Mineral Supply Chains

The geopolitical landscape significantly impacts the supply chains of critical minerals. The invasion of Ukraine by Russia, for example, disrupted the global titanium supply, forcing industries to seek more stable sources. This situation highlights the importance of diversifying supply chains to mitigate risks associated with geopolitical conflicts.

 

Environmental and Economic Benefits of Local Processing

Local processing of minerals not only adds economic value but also reduces the environmental footprint associated with shipping raw materials overseas for processing. Australia’s investment in local processing facilities ensures that the environmental impact of mining and processing is minimized.

 

The Future of Critical Minerals in Australia

The future of critical minerals in Australia looks promising. With increasing global demand for clean energy technologies and advanced manufacturing, the need for reliable sources of titanium and zircon will continue to grow. Australia’s strategic position and sustainable practices will be crucial in meeting this demand.

 

Final Thoughts

Australia’s role in the global critical minerals market is set to expand, driven by its rich natural resources and commitment to sustainable practices. As the world moves towards cleaner energy and advanced technologies, the importance of secure and stable supply chains for critical minerals like titanium and zircon cannot be overstated.

The strategic partnerships and local processing capabilities developed by Australian companies ensure that the country remains a key player in this vital sector, contributing to a sustainable and technologically advanced future.

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At Vaxa Bureau, we support leaders in critical industries to advance their knowledge, improve systems, and make informed decisions. If you have any questions or want to learn more about how we can help, reach out today.

Understanding the fabric of India

As Australian and US businesses look to expand their markets and diversify from traditional trading partners, Governments are paving the way for increased trade and security arrangements. Whilst the QUAD has created great government to government dialogue between Australia, India, the US and Japan, how do Australian and US businesses commence dialogue with local treading partners and succeed in the Indian market?

The World Bank’s latest data projects India’s GDP to reach an impressive $3.4 trillion, propelling the nation into the ranks of the world’s fifth largest economies. This feat is characteristic of India’s consistent performance as the fastest growing major economy, underscored by a recent statement from Prime Minister Modi, who confidently predicts India’s ascent to the third largest economy by 2027. This bullish outlook is underpinned by several factors, including visionary policy directives, stable governance, a favourable business climate, robust geopolitical relationships, and an environment conducive to innovation and trade.

As India emerges from the shadows of poverty, a growing demand for goods and services is being witnessed, rendering the nation an attractive destination for foreign businesses keen on investment and expansion. Notably, key sectors such as technology, healthcare, retail, automotive, defence, and infrastructure have served as avenues for foreign investors, catalysing India’s remarkable economic trajectory.

Today, with a staggering population of 1.4 billion people, English established as an official language, a democratically elected government, and a diaspora of educated citizens capable at bridging cultures, India has emerged as an alluring alternative to our traditional trading partners.

While the allure of Indian business prospects is undeniable, navigating its complex market landscape presents formidable challenges. Establishing and managing a business in India whilst trying to understand its intricacies demands considerable time and effort. Compliance with numerous local, state, and federal laws, securing the right permissions, licenses, and authorisations, and adjusting to the preferences of Indian consumers stand as pivotal conditions for achieving success.

Over time, companies have deployed diverse strategies to penetrate the Indian market. Suzuki’s partnership with the government in 1983 to launch Maruti Suzuki, a venture that continues to flourish, stands as a good example. Concurrently, Tata and Starbucks, Bharti and AXA General Insurance, Cadila and Bayer Zydus Healthcare, amongst others, have harnessed the power of joint ventures to secure their foothold. On the flip side, corporate giants such as IBM, Amazon, Coca-Cola, Pepsi, Google, HP, Nestle, and Sony have boldly charted their own pathways to success.

Nonetheless, for every success story, there exists a tale of struggle. Notably, in December 2022, the Indian government disclosed that 2,783 foreign companies and their subsidiaries had ceased operations in India between 2014 and November 2021. Motorola, Nokia, Vodafone, Chevrolet, and Walmart are examples of companies that encountered hurdles due to cultural disparities and the intricacies of conducting business in India.

Intricately woven into the fabric of Indian business is the need to comprehend its diverse and intricate environment. Businesses who have succeeded in India invest in cultivating relationships and trust with local stakeholders, recognizing the pivotal role personal connections play in shaping business interactions. As they say – “Your network is your net worth”.

The merits of patience, flexibility, and adaptability are crucial in navigating bureaucratic complexities and cultural differences. Prioritizing compromise during negotiations lays the foundation for enduring partnerships. Foreign entities must also demonstrate an astute awareness of the regulatory framework, tax structures, and compliance norms governing Indian commerce.

India’s hierarchical social structure places a premium on respect for authority and age, a principle that reverberates through business interactions. Communication often unfolds in an indirect and polite manner, necessitating active listening and a keen sensitivity to non-verbal cues. The nuances of timing and flexibility in scheduling meetings mirror the relatively relaxed nature of India’s business culture. To truly thrive, a nuanced understanding of the varied cultural landscapes across different states and regions is a must, serving as a bedrock for tailoring business strategies accordingly.

The crux of success hinges on capturing the local sentiment and honouring the prevalent culture. The revered status of the cow, the transformative impact of the Navratra festival turning carnivores into vegetarians, and the coexistence of English and local languages exemplify the intricate tapestry of Indian society.

This landscape, rich with contrasts, necessitates careful navigation.

The Indian penchant for ‘jugaad,’ the art of resourcefulness and innovative problem-solving, coupled with careful negotiation alludes most new entrants into the Indian market. This ethos can be harnessed in business to adapt to unique challenges and craft alternative solutions, albeit with a vigilant eye on potential regulatory implications.

Fluent communication in the Indian context is an artistry characterised by subtlety and indirectness. Politeness and lengthy phrasing are the norm, with individuals often veering away from direct negative feedback. Skilful active listening and skilled interpretation of non-verbal cues are pivotal in unlocking the underlying meanings within conversations, averting misunderstandings.

An often-misunderstood aspect by many investors is the intense competition across sectors. India’s consumer market, in particular, is a bustling arena teaming with local and international players vying for consumer attention. Foreign enterprises must impeccably tailor their offerings, services, and marketing approaches to resonate with the unique preferences of Indian consumers.

Impatience and unfamiliarity with Indian business customs can lead to stumbling blocks. The cultivation of relationships and trust is an endeavour that matures with time, demanding patience. Hastening into decisions or negotiations risks misinterpretation and the squandering of opportunities. Thriving in the Indian market necessitates an unwavering long-term vision and a willingness to recalibrate strategies to align with local dynamics.

Several critical sectors have propelled India’s economic ascent, functioning as beacons for foreign investment. The Information Technology (IT) and Business Process Outsourcing (BPO) domain, renowned for its skilled workforce and cost-effectiveness, exemplifies India’s global IT prowess. Simultaneously, the pharmaceutical sector, with its expansive generics market, is a significant contributor to India’s economic tapestry. The nation’s escalating renewable energy sector has garnered substantial attention, underpinned by the government’s commitment to sustainability. Additionally, the burgeoning consumer market, buoyed by a burgeoning middle class and amplified disposable incomes, unveils lucrative avenues for foreign businesses.

India unfolds as a land of boundless possibilities for foreign enterprises, albeit necessitating meticulous planning and a deep-rooted understanding of local markets and consumer behaviour. The complex interplay of cultural nuances holds sway over business outcomes, spotlighting the paramount need for adaptability and innovative strategies. India rewards the tenacious, the curious, and the visionary, beckoning those who dare to forge meaningful connections with consumers and surmount the challenges with resilience.

 

Rashmi Rai – Vaxa India Partner

As a business development and education specialist, Rashmi has extensive experience in identifying and delivering positive outcomes providing maximum impact or her clients and her local community.

Based in Delhi, she has a Bachelor’s degree in Arts with Hindi Honours and a Master’s degree in Arts with a focus on Language, both from Banaras Hindu University and holds a Bachelor’s degree in Education from Mumbai University.

Vaxa Bureau’s trade facilitation services help organisations and businesses looking to gain an advantage for their product or service into Australasia and the Indo Pacific.Our team consist of honorary diplomats, defence attaché’s and retired senior military officers, trade and policy advisors, professional services experts and supply chain and logistics specialists with extensive experience working at the highest levels of government and business across the region.

 

 

The future of maintaining food security

By Angus Woods, Owner of Woods Group

KEY TAKEAWAYS:
• Today, technological solutions are indispensable to feed a continuously growing population in the face of limited agricultural land, unsustainable natural resource use, and increasing shocks and stresses, including climate change.

• These solutions are needed to make agriculture more productive and sustainable across all its sectors.

• Feeding nearly 10 billion people by 2050, while maintaining economic growth and protecting the environment is an urgent, unprecedented challenge.

• Applications of data-driven technologies in agriculture have the potential to promote and maintain higher productivity, improved quality of produce, sustainability, as well as providing transparency to consumers.

 

There’s no question that food insecurity is one of the biggest problems facing the global population today.

With the changing climate and burgeoning the population, global food systems will likely witness increasing pressures in the coming decades on supply and demand competition.

Optimal utilisation of limited resources while intensifying farming practices to maintain food security will be a serious challenge for future sustainable crop production.

Various sources predict if stresses on our food system increase — everything from staffing and supply chain issues to climate change negatively impacting crops — more than 500 million people around the world could be facing acute hunger by the end of the year.

Feeding nearly 10 billion people globally by 2050, while maintaining economic growth and protecting the environment is an urgent, unprecedented challenge.

Australia, known as the “food bowl” of the Asia Pacific produce enough food to feed 75 million people. The $122.1 billion Australian food, beverage and grocery manufacturing sector is the biggest manufacturing sector with 273,000 jobs and is a backbone to regional Australia.

As a net exporter, it is therefore vital for our near neighbours that trade, security and shipping lanes remain stable.

Coupled with the geopolitical climate specifically across the Indo Pacific requires human intervention and smart farming practices using artificial intelligence (AI).

Various technological applications can help make farming more efficient and slow the effect of stressors on the food system.

From data processing tools and smart drones to automation and AI, these applications are already having an impact.

In many countries, declining rural labour availability – reflected in rising agricultural wages – is a main driver of agricultural automation.
Rising consumer concerns about food quality, safety, taste and freshness, together with environmental concerns, are also driving investment in digital technologies.

In recent years, the agricultural sector has witnessed an increased use of sophisticated equipment such as robots, satellites, GPS, drones, and other sensor guided vehicles.

These pieces of machinery serve as invaluable sources of data concerning crop growth, soil characteristics, and weather conditions.

While each of these hardware systems is important on their own, the application of advanced AI and machine learning-based algorithms as accumulated data would augment the full potential of these hardware tools.

Applications of AI would allow real-time monitoring and analysis of agricultural processes, generating critical knowledge to fine-tune strategies for optimal resource utilisation, boosting farm productivity while minimising environmental impact.

However, as digital technologies revolutionise, the risks of unequal access and digital exclusion loom large.

Countries must make investments in human capital and put policies and regulations in place to minimise such risks and ensure that everyone, especially smallholders who produce the majority of the world’s food, can participate in a new digital economy.

You might be surprised by Australia’s mining industry

By David Fraser, Managing Director, RZ Resources

Key takeaways

  • Australia is already among the top suppliers of some of the world’s most sought-after critical minerals, with global demand increasing exponentially
  • As countries and businesses grapple with the consequences of geopolitical instability in areas such as Ukraine, Russia and China, it boosts Australia’s credentials both as a supplier and a place to invest

Ask most Australians what they know about our mining landscape, and a few key constants will likely emerge. They know the industry is massive in states including Western Australia and Queensland, and that we’re big producers of materials such as lithium, iron ore, bauxite, gold and lead.

What they might not know is that the toothpaste they used this morning, or the coat of white paint they gave their walls at the weekend, likely started out underground in Australia. It’s the story of critical minerals and rare earth elements – one that’s rich in potential and prosperity.

Critical minerals – also commonly known as mineral sands – are metals and non-metals that have been deemed essential for the world’s major and emerging economies to thrive.

In Australia – as well as the US – there are 25 of them, including metals and semi-metals used in our smartphones, flat-screen monitors, electric cars, solar panels, paints, plastics, paper, glass and so much more. They include rutile, leucoxene, ilmenite, monazite and xenotime.

Rare earth elements, meanwhile, are a group of 17 metals made up of 15 lanthanides, plus scandium and yttrium. They are critical for industries such as aerospace and defence, as well as modern technologies like electric car batteries, permanent wind turbine magnets and agents used in medical imaging.

Both resources are also crucial to the development and expansion of clean technology applications, meaning growing global demand – especially for rutile, zircon and titanium – works to our advantage.

Looking to our closest ally, Australia has recently won the support of the United States for the development of its critical minerals industry after both countries reached an agreement to coordinate policies and investment to support the industry’s growth.

The deal paves the way for Australian suppliers of these minerals to be treated as domestic suppliers under the U.S. Defence Production Act.

The Ukraine-Russia conflict, to give one example, brought into sharp relief the fact this region of the world supplied 30% of the titanium for Boeing aircraft.

So when that supply chain is impacted at a fundamental level, as it has been by the ongoing conflict, where does the product then come from? And what does it mean for other nations?

It’s a question with which the world has been forced to grapple. And for Australia it means opportunity, for reasons ranging from risk to timeframes.

When companies look at where to do business, what they’re fundamentally looking for is certainty. That partners can supply decades of product, that this supply will be consistent and that, among other things, it will be done within appropriate safety guidelines.

In Australia, this works to our favour, given our ongoing political stability and rigorous commitment to quality. And it’s contributing to investment as a growing force, particularly from Europe, which is proactively exploring opportunities here.

That stands in contrast to some of the high-profile logistical issues centred around China in recent years.

During the pandemic, companies that were used to getting most of their product from the Asian powerbroker realised that supply wasn’t guaranteed – especially given geopolitical uncertainties.

Furthermore, a rise in product costs, coupled with inflation, opened up a case to look into other countries, like Australia, that may previously have been considered more expensive.

There was a fresh perspective that potentially paying a bit more was palatable if it shored up supply and quality, especially with Aussie companies showing their willingness to invest in strategic assets.

An example of this was RZ Resources’ move in 2020 to acquire a mineral separation plant at the mouth of the Brisbane River. As the only such plant on the east coast – noting China as our main competitor for this service – it significantly reduced capital cost and time to production. And it was done by a company that is 100% Australian owned and operated.

It creates an exciting precedent in an evolving industry which requires ongoing conversations, and leadership from the highest levels of government to ensure Australia can capitalise on its rich resources to position itself as an attractive place to invest and do business.

There’s also the influence of geopolitics on supply chains.

Looking to our closest ally, Australia has recently won the support of the United States for the development of its critical minerals industry after both countries reached an agreement to coordinate policies and investment to support the industry’s growth.

The deal paves the way for Australian suppliers of these minerals to be treated as domestic suppliers under the U.S. Defence Production Act.

The Ukraine-Russia conflict, to give one example, brought into sharp relief the fact this region of the world supplied 30% of the titanium for Boeing aircraft.

So when that supply chain is impacted at a fundamental level, as it has been by the ongoing conflict, where does the product then come from? And what does it mean for other nations?

It’s a question with which the world has been forced to grapple. And for Australia it means opportunity, for reasons ranging from risk to timeframes.

When companies look at where to do business, what they’re fundamentally looking for is certainty. That partners can supply decades of product, that this supply will be consistent and that, among other things, it will be done within appropriate safety guidelines.

In Australia, this works to our favour, given our ongoing political stability and rigorous commitment to quality. And it’s contributing to investment as a growing force, particularly from Europe, which is proactively exploring opportunities here.

That stands in contrast to some of the high-profile logistical issues centred around China in recent years.

During the pandemic, companies that were used to getting most of their product from the Asian powerbroker realised that supply wasn’t guaranteed – especially given geopolitical uncertainties.

Furthermore, a rise in product costs, coupled with inflation, opened up a case to look into other countries, like Australia, that may previously have been considered more expensive.

There was a fresh perspective that potentially paying a bit more was palatable if it shored up supply and quality, especially with Aussie companies showing their willingness to invest in strategic assets.

An example of this was RZ Resources’ move in 2020 to acquire a mineral separation plant at the mouth of the Brisbane River. As the only such plant on the east coast – noting China as our main competitor for this service – it significantly reduced capital cost and time to production. And it was done by a company that is 100% Australian owned and operated.

It creates an exciting precedent in an evolving industry which requires ongoing conversations, and leadership from the highest levels of government to ensure Australia can capitalise on its rich resources to position itself as an attractive place to invest and do business.

Defence, opportunity and strategy

Defence, opportunity and strategy: why the time is right to innovate in cyber security and defence

The Indo-Pacific is emerging as a critical geopolitical area for this century. In terms of economic, technological and resources capability, the area is crucial to continued growth and prosperity for the global community.

However, despite almost 80 years of relative peace, this area is now under threat due to increasing displays of regional aggression.

Australia’s role in the region has never been more essential to preserving hard won peace, securing economic gains and driving technological advancement.

As a nation, we must not shy away from emerging threats to peace in our region, instead we should use it as a catalyst to drive change, both at home and regionally.

We have a real opportunity to use the current regional uncertainty to bolster our own capability and innovation within the defence and cyber security sectors, which will have positive flow on effects for all Australians.

These include improving our own independence by building capacity across critical infrastructure, harnessing the power of new technology and properly funding startups that show promise in key sectors.

Advanced and emerging technologies, including artificial intelligence, combined with operational concepts that harness them in innovative and unexpected ways, are creating new opportunities to bolster our cyber and actual security.

Australian’s ingenuity for inventing solutions for some of our most vexing problems is celebrated the world over, including the electronic pacemaker, cochlear implants, the Gardasil vaccine and wi-fi.

And while Australians invented wi-fi, we missed the boat in truly monetising it. We believe that by investing in innovation, particularly in cybersecurity and defence, similar future opportunities will not be missed.

Despite our past successes in the innovation space, we lack the collective confidence to back ourselves and take risks in investing in early-stage technology.

This mindset needs to change.

Imagine an Australia where the best and brightest are properly funded in the startup stages. The depth of our collective capability would be nurtured and celebrated and its applications for the wider community would lead to significant progress.

Areas like quantum computing and hypersonics are already unlocking capabilities that were, until recently, deemed impossible.

Another key factor is the separation that exists within the minds of Australian people between defence tech and “everyday” technology. We need to communicate how investing in defence technology can benefit everyone’s lives, for example, using technology to generate unlimited clean nuclear energy, providing rapid transport with little to no impact on the environment and deploying rapid-build accommodation.

Technology gained from defence has been crucial in propelling all industries but particularly transportation, healthcare, technology and agriculture . A good example of this is the Australian tech company Advanced Navigation. Thought to now have unicorn status, the tech start-up developed Artificial Intelligence-based inertial navigation technology for space exploration, morphing to defence applications and is now powering driverless trucks transporting cargo between warehouses. These technologies, and building successful technology companies, present Australia’s best hope for a prosperous, peaceful future beyond regional tensions.

Emerging technologies including AI, are showing real promise across a range of industries, despite some challenges. As the Australian people become more comfortable with AI, they will be better able to understand how it can be applied to cyber and defence sectors and the flow on benefits to their own lives, notwithstanding improved defence and cyber capabilities.

At a business level, Azcende has taken on the responsibility to lead the development of a National Security Innovation Ecosystem (NSIE) for Australia and directly connect it with the US. The NSIE is about identifying tech entrepreneurs, experts and other broader stakeholders who have a desire to drive greater security, self-reliance and efficiency in water, utilities, defence and other critical infrastructure.

As a result of Azcende’s investment fund, we attract a number of startups that could be vital in their ability to address the national security risks including supply chain integrity. We advise boards and executives to understand which technologies could address these national security risks to maintain resilience through any major geopolitical instability.

This service pre-empts geopolitical risks, something invaluable to a country like Australia whose key allies are literally oceans away.

 

About the author
Alok Patel, Chief Executive & Managing Partner Azcende – Vaxa Bureau Associate

Alok is a technology and strategy executive with more than 20 years’ experience across numerous industries including defence , infrastructure, engineering, real estate and investment banking. He has developed leading technology initiatives across industry and government that leverage software and the Internet of Things for the operation of critical assets. Alok is also a Staff Officer at Warfare Innovation with the Australian Navy, working on AI, cyber warfare and autonomous systems. In addition, the Harvard Business School Alumnus has built a successful management consulting firm valued at $25m.

Supporting Legacy in its care and support for families of veterans

Anzac Day on April 25 is a time when Australia comes together to pay its respects to all those men and women who have served in the defence and protection of our country and our allies.

It’s a time of memorial that’s rich in both significance and symbolism, especially in noting those dedicated members of the armed forces whose service and sacrifice have created far-reaching consequences and impacts for their families.

It’s a cause to which Legacy has been dedicated for 100 years – and something Brisbane business Vaxa Bureau has now committed to championing through a trailblazing new partnership.

In Legacy’s centenary year, Vaxa Bureau has announced it will begin gifting the organisation with a percentage of its annual profits to support the charity’s valuable work.

Services Legacy provides include:

  • Relieving financial hardship – providing basic needs, and advocating for families’ rights and benefits;
  • Delivering social connection services – ongoing social support in times of loss and grief; working to ensure emotional health and wellbeing; and
  • Providing developmental opportunities – providing for education and development goals to help families grow and thrive despite adversity.

Among those cared for by Legacy are ageing and vulnerable widows, young families and children, and dependents with disabilities.

Vaxa Bureau director Todd Crowley said the company looked forward to a meaningful partnership.

“Many of our team members have a long history themselves with military organisations, either as former serving members, contractors or through our families,” Todd said.

“We know from experience how vital the work of Legacy is in ensuring that the partners and children of veterans who gave their lives or their health can fully realise their potential.

“It’s about remembering that behind every veteran there’s a family.”

Legacy Brisbane CEO, Brendan Cox, said they supported more than 5000 family members of fallen and injured veterans across South-East, Central and Western Queensland.

Brendan encouraged other corporations to follow suit with regular workplace gifting programs.

Other types of support include donations or signing up as Legatees, volunteer members who deliver the vast majority of services to support veteran families.

“Our mission is clear – to ensure the families of veterans don’t suffer financially or socially after the death or injury of their loved one,” Brendan said.

“These courageous men and women made the ultimate sacrifice for their country and Legacy is committed to supporting their loved ones.

“We are extremely grateful for the support we receive across Australia.”

If you’d like to learn more about how you can support Legacy’s crucial services, visit Legacy.

The SITREP

Access a central library of credible information, extensive research and timely intelligence. Hear from our trusted network of the best industry minds, on matters of importance to critical sectors operating in the Indo-Pacific.

Contact us

If you’re looking to gain an edge over the competition, let’s talk.

Uncertainty in the Asia Pacific – a global challenge

By Captain Matt Ort, retired (US Navy)

 Key takeaways:

  • The growth of China over the past five years has been nothing short of extraordinary.
  • Whether any of the activities China took with respect to the COVID outbreak were malign or not, the actions and decisions they made negatively impacted the world.
  • Post-pandemic, the US and its allies must shift supply chains away from China to more trustworthy nations while semi-conductor shortages have driven costs to record highs.
  • How the world chooses to react now will likely determine China’s future actions.

 

The past five years have seen great change in the Asia Pacific.

The growth of China has been nothing short of extraordinary. Most China-watchers had already recognised China as a peer to near-peer, but things changed in November 2018.

The COVID pandemic swept the world. It doesn’t matter whether you believe the virus was engineered in a lab or jumped from an unidentified animal at a wet market.

The cover-up, delayed reaction/notification, and their actions since have significantly altered everyone’s ideas of where and how China would fit into both their own shoes as a potential world power and the conventional western world order.

Freedom of navigation, island building/militarisation in the South China Sea, and Taiwan re-unification is where the attention of most of the US government and its allies in the regions were focused pre-pandemic.

Post-pandemic those items have not changed, however now the US and its allies must contend with supply chain issues that China was able to exacerbate by siphoning goods purchased by countries around the world to their own population once there was a shortage.

Like minded nations will need to shift supply chains away from China to more trustworthy nations.

There will be a cost to this that needs to be paid now, so China can’t disrupt the world again whenever it decides. India and Indonesia are two countries that can benefit from this shift while keeping costs lower than the US, Australia, or their allies.

China continues to dominate the world’s share of critical minerals. Numbers vary based on the mineral, but somewhere between 85-95% of minerals on the US Critical Minerals list are controlled by China.

China has translated this to get around 10% of the world’s semi-conductor market and could almost double that in the next two years. This makes the Taiwan re-unification issue even more important.

Taiwan has 20% of the global industry, but Taiwanese companies account for about 50% of the market. If China were to re-take Taiwan it stands to gain most of the world’s semi-conductor production. This is not something to be taken lightly.

The re-unification of Taiwan has been a priority of Xi Jinping and the Chinese Communist Party (CCP) for many years.

The invasion of Ukraine by Russia has been watched closely by the CCP to help them determine timing, strategy, and possible ramifications of re-taking Taiwan by force.

Allied nations must determine an inclusive policy to discourage Beijing from taking these actions. By aligning themselves with Russia it is obvious to anyone watching that China’s arguments for taking Taiwan will be based off the lessons they learn from Russia’s “re-unification” of Ukraine. Only united can the world deter China.

Whether any of the activities China took with respect to the COVID outbreak were malign or not, the actions and decisions they made negatively impacted the world.

Worldwide 7 million people are dead, hundreds of millions more were negatively impacted health wise or monetarily.

The supply chain has been stood on its head and semi-conductor shortages have driven costs to record highs. How the world chooses to react now will likely determine China’s future actions.

The SITREP

Access a central library of credible information, extensive research and timely intelligence. Hear from our trusted network of the best industry minds, on matters of importance to critical sectors operating in the Indo-Pacific.

Contact us

If you’re looking to gain an edge over the competition, let’s talk.