I’m pleased to be here for an important discussion between Australian iron ore miners and Chinese steelmakers. I appreciate you taking the time to join me today.
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.
Trade remains a central pillar of our bilateral trading relationship, supporting jobs, investment and prosperity in both countries.
Steelmaking value chains are also responsible for 7 to 9 per cent of global emissions. 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.
Steel decarbonisation presents a range of challenges. What we need are enabling policy environments, extensive investments in research to develop new technologies and collaboration across academia, industry and government.
Australia and China each have major stakes in how the decarbonisation efforts develop. As both countries cooperate 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.
I want to acknowledge the significant work underway in Australia and China to develop technologies and policies to achieve these goals. Some of which are already showing promising results.
Fortescue is progressing its ambitious green metals projects, including the hydrogen-based green iron pilot at its green energy hub at Christmas Creek in the Pilbara.
And Hancock is a core partner in research projects at the Australian Heavy Industry Low-carbon Transition Cooperative Research Centre on developing low-carbon processing technologies suitable for Pilbara ores.
But just as vital are efforts being progressed by Australian and Chinese partners.
Such as Rio Tinto’s partnership with Shougang to optimise its steelmaking processes.
And BHP’s initiatives with HBIS and Baowu, including the successful commercial scale direct reduced iron trial using Pilbara iron ores.
While Government has an important role to play, we know it will be industry that drives the major developments to decarbonise the sector.
The Australian Government is committed to supporting these industry-led efforts.
I look forward to hearing your observations today.