Why Australia don't process its iron ore?
It has plenty of iron ore mines, biggest in the world. Big land mass and coal to fuel the furnace and expert in metallurgy.
The hindrances for Australia to process iron ore into iron ingot& others secondary materials might due to cost. The answer is automation. Robot can cut down 80% of manufacturing process. The rest are technical team like metallurgical expert, management and logistic staffs.
Australia have no reason to shy away from processing its own iron ore because of pollution because pollution is worse during mining part which happening in Australia while during the process pollution and by products can be better controlled and even turn into others commercial products thus making the process of iron ore more environmental friendly to be done in Australia than elsewhere.
If Australia can allow for mining why not the process which is much less toxic and able to control?
It is more environmental responsible to do it in Australia than in developing country. We are sharing the same planet, Earth. GHG(Greenhouse gas) emitted in China or anywhere else will be felt in other part of the world too. Climate change have no boundary. The same process if emitted more GHG do not reflect Australia effort in fighting climate change if it can reduce it by having better control in the country and only export after processed materials or even secondary& end products (casted) to the world with a fraction of transportation cost and GHG emission.
The cost savings from transporting raw materials can be used to offset the cost of production. Selling ingot or further process iron increase the value multiple times.
Through and flow, it takes 1.6 tonnes of iron ore and 450kg of coke to produce a tonne of pig iron. This is more than double of the weight of transportation requirements, 7,450km between Australia and China one way, accounting for 4,299.39 tonnes of carbon emissions. However, this amount of carbon emission could have reduce half and saved 2,149.7 tonnes of carbon emission if the transportation is avoided. This cost saving can use to offset the extra cost operating in Australia.
China has successfully become the largest producer of all essential metal necessary for future technology i.e. Robot, building materials (steel truss, rebar, ironmongery), cable wire, computer, ship, plane, motor both diesel and electrical, weapon (firearm) mechanical parts, electronics including computer &phone.
Automotive, railway, aviation and shipyard is all about metal. Without aluminum, steel and copper, transport industry will not exist.
China is building their own commercial plane, COMAC, and will be a rival to AIRBUS and Boeing soon. Likewise with shipbuilding.
Samsung and others electronics manufacturer is moving to India but materials still need to come from China. Electronics is heavily dependent on copper. Electrical supply itself is made of copper wire.
This is not healthy for both China and the world because China dominating essential materials and production line is becoming a threat to the existing superpower, USA and its alliances. This will inevitably invite certain degree of politics turbulence and seen as intimidation when problem arise. For instance, the recent COVID outbreak had waken up the world about China domination in manufacturing of health and medical supplies that may seen as threat to certain country security.
I personally think it is just how capitalism works. China provide cheap labor, land and transportation thus low OPEC. This make business environment friendly for business to operate from China hence many industry spring up.
China achievement is applausible. I believe there's more strategic cooperation to boost economy between the two countries while act more responsibly for the environment.
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