Chinese steel mills will not deal with the increased costs from an Australian mining tax, Chinese officials say.
The China Iron and Steel Association (CISA) secretary general Shan Shanghua explained that "Chinese steelmakers will not be able to accept rising costs from the Australian iron ore mining tax as steel prices will see the ceiling, and downstream users, including auto and house appliance, won’t consume rising costs."
He went on to say that China will be importing less iron ore for production this year as compared to last year.
These statements come on the back of Australian ambassador to China, Geoff Raby, imploring Chinese steel mills to look to establishing production facilities in Australia.
Speaking at an iron ore conference in Dalian, China, Raby said Australia is already a top investment target and importer of iron ore for China.
Existing magnetite and hematite deposits plus other steel production materials such as coking coal being readily available should open the door to Chinese investment into Australian steel, and the establishment of mills here.
“As Chinese mills develop their interests in Australian magnetite….they should consider the potential for taking further steps downstream into steel processing.”