Bloomberg: The Dilemma of Australia's Lead Smelter Highlights the Challenge of Global Dependence on Chinese Minerals
Bloomberg reported on July 4 that the Port Pirie lead smelter in southern Australia is facing a survival crisis. This 130-year-old plant is struggling due to high costs and competition with China, becoming a symbol of the global effort to reduce dependence on Chinese mineral processing. Recent severe weather has forced workers at the plant to repair equipment and attempt upgrades to maintain production, but its high energy consumption and environmental costs make it difficult to compete with the efficient capacity of Chinese smelters. Data shows that China currently controls about 70% of global lead smelting capacity and dominates the processing of co-occurring metals such as copper, gold, and silver. Tim Hogan, chief economist of the Australian Industry Group, said: "China has lowered processing costs to 60% of international levels through large-scale production and policy support, forcing European, American, and Australian companies to either exit the market or rely on government subsidies to survive." It is reported that if the Port Pirie plant fails to receive a new A$230 million government aid package, it may follow the fate of similar factories in Europe and the United States and close, further weakening Western autonomy in key mineral supply chains. Canadian Minister of Natural Resources Jonathan Wilkinson recently called on G7 countries to establish a price alliance to counter China's "market distortion," but industry analysts believe it will be difficult to shake China's absolute advantages in smelting technology, logistics, and rare earth separation in the short term.
Original article: https://www.toutiao.com/article/1836799645149514/
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