PM pushes Australian ore in China as steelmakers stare down decarbonisation
The country's behemoth construction industry has slowed in recent years, fuelling fears a downturn in steel production could smash demand for Australian iron ore and threaten jobs as well as the national bottom-line.
Both countries have also committed to cleaning up big polluting industries in line with their broader climate goals.
With Australia the world's largest iron ore producer and China Australia's top customer, the Prime Minister will make the case for closer co-operation.
'I'm pleased to be here for an important discussion between Australian iron ore miners and Chinese steelmakers,' Mr Albanese will tell the roundtable, according to speech extracts seen by NewsWire.
'Australia and China's iron ore and steel sector partnership has contributed to both countries' economic development for decades.
'Australian miners are reliable and stable suppliers of iron ore, responsible for almost 60 per cent of China's iron ore imports.
'That iron ore goes into Chinese steel production which accounts for over 50 per cent of global supply.'
BHP, Hancock, Rio Tinto and Fortescue will all be seated at the roundtable, with Twiggy Forrest among the executives showing up.
Nearly 145,000 Australians work in the metal ore mining industry, according to the latest official figures.
In 2024, iron ore exports alone were worth north of $150bn.
But it is a dirty business in a world scrambling for greener options.
'Steelmaking value chains are also responsible for 7 to 9 per cent of global emissions,' Mr Albanese will say.
'Achieving the goals of the Paris Agreement will require the decarbonising of steel value chains, presenting an opportunity for Australia and China to progress our long-term economic interests.'
Mr Albanese will raise the 'challenges' of steel decarbonisation, but aim to reassure both the Australian mining chiefs and the Chinese steel bosses that Australia is willing to front up the cash investments and tweak policies.
'What we need are enabling policy environments, extensive investments in research to develop new technologies, and collaboration across academia, industry and government,' he will say.
'Australia and China each have major stakes in how the decarbonisation efforts develop.
'As both countries co-operate to advance decarbonisation, we also need to work together to address global excess steel capacity.
'It is in both countries' interests to ensure a sustainable and market-driven global steel sector.'
Later on Monday, Mr Albanese will have a lunch with Australian and Chinese business leaders.
Both roundtables are key parts of his six-day diplomatic and big business blitz in China.
Against a backdrop of an increasingly militaristic regional rivalry with Beijing, Mr Albanese has been keen to reframe the bilateral relationship in friendlier terms, such as tariff-free trade.
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