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Canada signs multibillion-dollar military contract with Australia

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Andrew GreeneThe Nightly
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Defence Minister Richard Marles will on Monday sign a multibillion-dollar contract with Canada to export Australia’s leading radar technology.
Camera IconDefence Minister Richard Marles will on Monday sign a multibillion-dollar contract with Canada to export Australia’s leading radar technology. Credit: News Corp Australia

Australia has signed its biggest military export deal on record to supply a locally developed radar known as JORN to Canada, a year after the North American nation announced plans to acquire the world-leading technology.

Defence Minister Richard Marles joined Canada’s junior Defence Minister Stephen Fuhr in Canberra to ink the initial phase of the multi-billion-dollar project, but the Nightly has learnt his senior counterpart, the Minister of National Defence of Canada David McGuinty. was originally scheduled to also be part of Monday’s event.

“The agreement that Stephen and I have just signed represents the biggest defence export in Australia’s history, with Canada’s procurement of the Over The Horizon Radar,” Mr Marles said after the signing.

“This is a $2.5 billion deal, and it is far and away the largest defence export that we have ever done,” he said of Canada’s push to use the Jindalee Over-the-Horizon Radar to build its new Arctic Over-the-Horizon Radar system.

Speaking alongside Mr Marles and his Australian counterpart Pat Conroy, the Canadian Secretary of State for Defence Procurement Steven Fuhr declared the two Five-Eyes partner nations had “stood shoulder-to-shoulder for generations”.

“As the world adjusts to its new strategic and economic realities, I can’t think of a stronger partner to work with than Australia,” he said.

“This capability will significantly enhance Canada’s Arctic domain awareness, detect and track air and maritime threats with much greater range, strengthen NORAD by providing earlier warning and improving continental defence, and reinforce Canada’s Arctic sovereignty.”

Developed in the 1980s, the high-frequency, sky-wave, over-the-horizon system is considered the most advanced in the world, providing surveillance of ships and aircraft out to 3000km.

Under the stage one agreement BAE Systems Australia will develop a single radar site in Canada based on the over-the-horizon technology used in JORN, while the Royal Australian Air Force will help to train Canadian operators.

The Nightly understands negotiations are continuing to also export the JORN technology to the United States and the United Kingdom, but Mr Marles declined to discuss progress on those discussions.

“We engage with other countries in respect of our defence industry, but ultimately what decisions other countries make in respect of that is clearly a matter for them,” Mr Marles said.

When pressed on whether the Trump administration in the US was forcing America’s oldest allies to do more for themselves militarily, Mr Fuhr insisted Canada was still working closely with Washington.

“We’ll continue to work with the Americans. That’s not going to change, but the relationship is different. We have great partners in other places in the world — this being a very good example of it with this radar — and I’m sure there’ll be much, much more to do”.

Ahead of Monday’s announcement of the completion of the JORN contract, The Nightly revealed that Mr Marles’ direct Canadian counterpart David McGuinty had recently cancelled his scheduled visit to Australia this week to oversee the signing.

Asked whether Mr McGuinty had become the second minister to stand up the Australian Defence Minister this month, Mr Fuhr confirmed that his colleague had instead been diverted to other duties in Japan.

“Minister McGuinty is in Japan with a trade commission. I was in Berlin and Paris prior to coming here. We’ve got lots going on in many regions of the world right now, so it’s just a matter of dividing up all the effort and everyone taking their turn at bringing it all together.”

Earlier in June the UK Defence Secretary John Healey sensationally resigned from his position just hours before he was due to give Mr Marles a tour of a British naval facility in Portsmouth.

During his visit to Australia Mr Fuhr said he would also be taking the opportunity to inspect the locally developed Ghost Bat unmanned aircraft which Germany’s military has also expressed interest in purchasing.

Mr Fuhr said Australia appeared to have “a bit of a lead” on collaborative combat aircraft technology and confirmed that Canada was also examining the locally developed Army Infantry Fighting vehicle known as Redback.

“You would have noticed, we’re recapitalising our entire military,” he said.

“I’m surprised someone hasn’t asked me about submarines but that’s happening too, and the army’s recapitalising.

“With regard to Redback, we are probably in early stages of that type of capability, so I’m sure that’ll come to the surface during options analysis, but I can’t speak to it any more than that.”

When Canada’s Prime Minister Mark Carney first revealed plans to purchase the JORN system in March 2025, it was anticipated the deal could eventually be worth $6.5 billion.

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