Thousands of jobs at risk in industry collapse
The research by the McKell Institute reveals approximately 73,000 jobs in Australian regions reliant on refining and smelting metals are vulnerable.
The report highlights the town of Port Pirie in South Australia, where state ministers have called for a federal bailout to save its lead smelter, a crucial local employer.
If the smelter closes, the report estimates the town's population could drop by around 2,000 people, roughly 11 per cent, as economically productive residents and their families relocate.
'South Australia simply cannot afford to lose industrial anchors such as the Port Pirie smelter – anchors that have sustained regional communities for generations,' McKell Institute chief executive Ed Cavanough said.
'Our analysis shows that if the Port Pirie smelter were to close, the town's population could drop by around 2,000 people – that's 11 per cent – in the first year alone.' The report claims the closure of Port Pirie's smelter could spark a mass exodus from the town. NewsWire / David Mariuz Credit: News Corp Australia
The report claims China's 'aggressive' industrial subsidisation, now likely exceeding its defence spending, is a major driver behind the mounting pressure on Australia's refined metals sector.
In 2019, China invested an estimated $407 billion in industrial subsidies, enabling it to produce refined metals at significantly lower costs and flood global markets with cheap products, the report said.
'In the short-term, China's geoeconomic strategy is designed to onshore as much global heavy industrial capacity as possible,' Mr Cavanough said.
'In the longer-term the strategic goal is limiting the viability of critical manufacturing in competitor economies, including Australia.
'This would create a huge long-term economic advantage for China, and hobble Australia's industrial capacity.' The report calls for a cohesive national strategy to safeguard the industry. NewsWire / Dan Peled Credit: News Corp Australia
Mr Cavanough said other nations are actively responding to these challenges while Australia's current approach of reacting plant by plant is unsustainable.
'Currently, the government is playing industrial whack-a-mole – working with individual refiners to preserve individual plants as they come under threat,' he said.
The report urges the Albanese Government to develop a cohesive national strategy to safeguard communities reliant on the industry.
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