Direct Action and the carbon benefits
of magnetite
If other magnetite-producing countries were part of a global
mandated emissions trading scheme, a competitive advantage
would occur given its lower overall carbon output when compared
with hematite.
Processing magnetite into a saleable form is energy and
emissions-intensive here in Australia; however, these higher
emissions are more than offset in the steelmaking process overseas
when considering the product from mine to steel. Magnetite
is exothermic (relating to a chemical reaction that releases heat)
and requires less energy to convert it to steel than hematite
iron ore.
Many countries are moving towards a mandated scheme but
in the interim, the new Direct Action Plan laws will soon be
subject to a whitepaper process. Direct Action laws will look at
emissions and this gives projects which have now commenced in
WA a chance to have their emissions data included – this was not
possible under existing legislation.
Chinese investment in Australia
MagNet and its members are well represented on the Australia
China Business Council (ACBC). The Council released some
interesting research recently. For the last five years, ACBC has
commissioned Allen Consulting to research the impact of Chinese
trade, investment and its contribution to the Australian economy.
The report
The Benefits to Australian Households of Trade with
China
(
August 2013) found that Chinese investment comprises
1.1%
of total foreign investment in Australia, with the US
providing 28%, Britain 23%, and Japan 6%. Conversely, Australia’s
investment in China accounts for just 1.5% of all total outward
investment from Australia – about $20 billion.
MagNet would like to see more discussion regarding the
benefits of foreign investment in the magnetite sector, as well
as clear Foreign Investment Review Board rules. Hopefully this
type of research will deter any xenophobic singling out of Chinese
investment as a focus for criticism.
With many projects proposed, approved or under pre-
construction in Western Australia which will mine and process
magnetite concentrate and/or pellets, MagNet looks forward to
being a part of increasing Chinese-Australian ties as well as trade
and investment.