FOR MEDIA 10 AUGUST 1984
The signing this evening of an agreement between CRA and
China represents a major step in the development of
co-operation between the iron and steel industries of China
and Australia. The agreement provides for the CRA group and
China to enter into a feasibility study for a joint venture
for the development of an iron ore mine in Western
Australia. If a new mine is developed at the Channar
deposit in the near future, as seems likely, it will
represent the first new iron mine development in Australia
since the initial decade of export-oriented expansion which
ended in the early nineteen seventies.
Through this venture it is hoped that exports of from 5 to
million tonnes per annum in addition to exports under
on-going arrangements can be realised. The proposed Joint
Venture would mean more jobs for Australians and increased
export and national income for Australia. It would assist
our construction and heavy engineering industries.
The CRA-China agreement follows by only a few hours the
conclusion by the Deputy Prime Minister and Minister for
Trade, Mr Lionel Bowen, of an agreement on Economic and
Technical Co-operation between the iron and steel industries
of Australia and China. The conclusion of such an agreement
with China is unique; and is a concrete demonstration of the
desire which exists on both sides to see further integration
of the Australian and China iron and steel industries to the
mutual advantage of both countries.
The Channar iron ore mine feasibility study and the
technical co-operation agreement are direct results of
discussions between Premier Zhao and myself in Canberra last
year and in Beijing this year, culminating in the
establishment of the Australia-China Iron and Steel Industry
Joint Study Group.
There has been rapid progress since February on all aspects
of' Premier Zhao and my agreement last February to promote
co-operation between our two countries' iron and steel
industries trade in steel-making raw materials; joint
ventures in each other's iron ore mining and iron and steel
processing industries; joint trade in processed iron and
steel; and mutual technical assistance.
Iron and steel co-operation has been advanced through
intensive high-level exchanges between Australia and China.
In recent months the Chinese Minister for Metallurgical
Industry has concluded an extensive visit to Australia,
Lionel Bowen has visited China and presently China's Vice
Minister for Metallurgical Industry, Mr Lin Hua, is
undertaking an extensive visit to Australia. Mr Lin will be
holding discussions on a range of issues including the
re-opening of the Kwinana blast furnace and Koolyanobbing
iron ore mine, the future development of technological
co-operation between our industries, and iron and steel
industry joint ventures in China.
There have also been intensive high-level exchanges
involving the private sector, including visits by CRA and
BHP delegations led by their respective chief executives,
Sir Roderick Carnegie and Mr Brian Loton.
Just one week ago a Technical Assessment Mission returned
from an extensive inspection of the iron and steel industry
of China. The Mission included senior representatives from
BHIP, CRA and CSR. I am advised that the Mission has
identified significant prospects for increased trade and
technological co-operation between Australia and China which
should provide a welcome stimulus to Australia's iron and
steel industry.
At the same time they will assist China to meet the huge
increase in demand for iron and steel which will be
associated with the success of its modernisation plans
between now and the end of the century.
While this Mission was in China, a number of other private
sector missions were discussing specific commercial
prospects for increased trade with China. These missions
covered a broad range of prospects from the supply of iron
ore and manganese to the Chinese steel industry, to the
supply of equipment and technology in galvanising and
finishing steel industry.
Already since February we have seen substantial increases in
Australian sales of iron ore, processed iron and steel and
manganese to China.
3.
Amongst other interesting aspects of the recent exchanges,
the Chinese industry has shown considerable interest in new
steel-making technology that is available to the CRA group
throught its part-ownership of the German steel producer,
Kloeckner. I am confident that further development of iron and steel
co-operation between Australia and China will generate
immense benefits for the people of our two countries.