Time to take a stand against the CCP’s economic warfare

This is a result of greater mine output, and also an innovative process for producing stainless steel. The Indonesian government has insisted, contrary to WTO rules, that refining must occur in Indonesia, and it is powered by cheap Indonesian coal.

Approval and construction periods are also shorter in Indonesia than elsewhere with The Strategist reporting:

Three Chinese businesses ... have built Indonesian plants to manufacture battery-grade nickel for under US$1.5 billion each. The plants took only three years to build and 12 months to reach full capacity.

By comparison, the Ravensthorpe plant in Western Australia, with a similar output, cost US$2.2 billion and took nine years to build and reach production capacity. The Goro plant in New Caledonia cost US$5.9 billion and took 17 years to reach capacity.

Ominously, Indonesia is said to be looking to apply the same strategy to bauxite and possibly copper, two other metals important to the Australian economy.

How important are our mineral exports?

In minerals, 70 percent of processed rare earth come from China. You can't run sophisticated computer chips vital for high-end uses like AI and defence without the mineral.

China also dominates solar panel manufacturing, and is well on the way to dominating the production of electric vehicles, and on it goes.

Vertical integration with all roads leading to Beijing, based on a zero-sum, Malthusian fear of resource scarcity appears to be what the Belt and Road strategy is all about.

Australia's prosperity relies heavily on exports of iron ore and coal. Exports represent approximately 23 percent of our GDP, metal ores and minerals are 8 percent of GDP, and coal, coke, and briquettes 7 percent.

If we don't have exports of those minerals at current prices and volumes, it is going to be more difficult to pay for imports which are equivalent to around 18 percent of GDP and include petroleum, virtually all of our motor vehicles, telecom equipment and parts, computers and electronics, and pharmaceuticals.

It would also represent a threat to state and federal budgets.

In 2021-22, mining contributed $63 billion to state and federal budgets, and accounted for 32 percent of all company taxes paid in the country.

According to the Minerals Council of Australia, this would fund the entire Medicare scheme for two years.