Digging Deeper: Is Western Australia's Gulf Strategy in Mining Reform Too Narrow?

Olivia Suthers | Middle East Fellow

Image sourced from Lars Portjanow via Unsplash.

As the global hunt for critical minerals intensifies, Western Australia (WA) is positioning itself as a linchpin in energy transition and technological change. The state's resource industry is drawing worldwide interest from companies due to its enormous deposits of lithium, nickel, cobalt, and rare earths: materials necessary for renewable energy systems and tech supply chains. The Gulf Cooperation Council (GCC) states – Saudi Arabia, the United Arab Emirates, and Qatar – are among the most strategically important, as their plans for economic diversification largely depend on gaining access to these essential resources.

The WA Government presents a clear vision in its Invest and Trade 22/23 Gulf Region Market Outlook: to deepen trade and investment ties with Gulf states through streamlined regulatory reforms, proactive investment attraction strategies, and partnerships with technical institutions to increase sectoral capability. These initiatives signal a shift from merely exporting raw materials to facilitating a more integrated, long-term engagement with Gulf partners.

On the surface, this alignment appears to be advantageous for both parties. Gulf states are eager to avoid solely relying on oil by investing in companies that are focused on the future, while Western Australia aims to modernise its extractive industry, attract capital, and generate employment. However, this alignment has a complicated and potentially insecure foundation, stoking concerns over about its focus on transactional gains over inclusive, equitable, and sustainable development for both WA and the Gulf.

Extractive Ambitions v. Social Licence

First and foremost, the rapid liberalisation of mining regulations risks excluding crucial voices — particularly those of Indigenous communities, whose lands contain many of the state’s mineral riches. Australia’s mining history is marred by tense relationships with Traditional Owners, broken promises, and cultural harm, exemplified by Rio Tinto’s widely condemned destruction of Juukan Gorge, in 2020. Any attempt to transform the resources sector without embedding Indigenous rights and free, prior, and informed consent at its core is not only ethically indefensible but also strategically flawed.

Given the mounting pressure on Gulf investors to meet environmental, social, and governance (ESG) standards, the reputational risks of neglecting these issues are significant. Sovereign wealth funds such as Saudi Arabia’s Public Investment Fund and the Abu Dhabi Investment Authority brand themselves as sustainable, progressive investors,. Their credibility—and their broader diversification narrative—will be undermined if they back extractive projects that fail to prioritise Indigenous consultation and environmental safeguards.

To align with both ethical imperatives and strategic interests, it is essential that these investors demand robust, transparent commitments to Indigenous rights and ESG compliance as a non-negotiable precondition for their involvement in Australia’s mining sector.

The Mirage of "Streamlined Reform"

Theoretically, easing rules may boost investor confidence. However, in practice, it can also erode transparency and accountability, especially when changes are implemented without thorough stakeholder input or environmental monitoring.

The mining industry already operates in a high-risk environment because of its environmental intensity, social disruption, and political sensitivity. Attempts to get products to market or secure foreign money quickly, as well as getting around "green tape", might put communities and ecosystems in jeopardy. Therefore, rather than deregulation, regulatory intelligence, a framework which prioritises robust checks and balances with corporate interests, must become the cornerstone of reforms.

ESG or Window Dressing?

The Gulf region is becoming more conscious of the fact that ESG is a crucial metric for long-term competitiveness. In this way, the Gulf strategy of WA presents a chance for both sides to move beyond conventional extractive approaches.

Investors in the Gulf should demand greater openness from their Australian counterparts about local benefit-sharing, environmental impact studies, and Indigenous involvement. Authorities in WA must also incorporate ESG measures into their investment attraction strategies as fundamental requirements rather than afterthoughts. This should include bolstering environmental safeguards, guaranteeing Indigenous people's free, prior, and informed consent (FPIC), and pledging to use co-development models.

Responsible Minerals – What’s Coming

A more responsible and resilient Gulf-WA mining partnership requires a shift from short-term capital flows to long-term sustainability. Accordingly, all stakeholders must:

1. Ensure Indigenous representation in policy formulation and decision-making on mining reforms.

2. Create binding frameworks for community development, environmental restoration, and economic diversification in mining regions.

3. Publish all agreements, impact assessments, and performance reports to ensure stakeholder scrutiny.

4. Foster dialogue between Gulf and Australian ESG experts, Indigenous rights advocates, and sustainability leaders to co-develop best practices.

There is untapped potential in building a partnership not just in resource exchange but of mutual learning. Gulf states can contribute capital and innovation, and Australia can share lessons in Indigenous rights, environmental stewardship, and community engagement, provided it first addresses the contradictions in its current approach.

Reimagining Strategic Cooperation

The opportunity before us is not just economic; it is ideological. As Australia seeks to deepen its strategic engagement with the Middle East, it must ask what kind of partner it wants to be. If the answer includes words like “ethical,” “inclusive,” and “sustainable,” then mining reforms must reflect those values in practice, not merely in marketing.

For Gulf investors, the road to diversification must not echo the exploitative paths taken by resource powers in the past. Instead, they must act as standard-bearers for responsible investment, demanding frameworks that respect the land, its people, and future generations.

In a world grappling with climate instability, geopolitical shifts, and demands for justice, extractive industries will be judged not just by what they produce, but by how they produce it, and who benefits. The WA–Gulf partnership can be a model of responsible cooperation, but only if it digs deeper than capital and commits to reforming the very foundations of extractive governance.

Olivia Suthers is the Middle East Fellow for Young Australians in International Affairs. Olivia is a recent graduate from the University of Western Australia, holding a Bachelor of Arts with a major in Asian Studies. Growing up, Olivia lived in Brunei and Qatar. This early experience sparked what would become a major passion for fostering cross cultural understanding, specifically regarding the frequently misunderstood region of the Middle East.