Fears Australian copper is next on China’s trade hit list
There are concerns for SA’s multi-million-dollar copper export sector, with reports it’s next on China’s trade hit list.
SA Business
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South Australia’s copper mining sector could face a multi-million-dollar blow if China turns off the tap, with fears it could be next on Beijing’s trade hit list.
But at least one Australian mining company publicly said on Tuesday it was confident it could sell more copper to non-Chinese markets “should it be required”.
The fears about a possible hit to Australia’s copper exports to China, worth $3.4bn in 2019-20, were sparked by reports in Chinese media on Monday.
It comes after rock lobster exports were stranded at Chinese airports at the weekend for extra screening for heavy metals, while Australian barley, wine and beef have also been targeted this year.
The Hong Kong-based South China Morning Post reported Australian copper ore and copper concentrate, and sugar, could face disruptions from this week.
It cited unnamed sources saying China’s companies had been “informally instructed” to stop buying Australian products such as barley, sugar, red wine, timber, coal, lobster, copper ore and concentrate from Friday.
SA exported more than $767m worth of copper and copper ores and concentrates to China last year.
Australian industry sources told The Advertiser they were aware of the reports but there had been no formal restrictions on copper imports.
Mining company Sandfire Resources, which operates two mines in Western Australia, issued a statement questioning the reports, but added that “should it be required” it was confident it could sell more copper to non-Chinese markets such as Japan, Korea, the Philippines and Europe.
Trade Minister Simon Birmingham said the “numerous reports of difficulties that different Australian exports are facing on entry into China are of concern”.
“Whilst we shouldn’t jump to conclusions, we are working closely with the various industries who have been the subject of these reports,” he said.
“We also continue to make inquiries with Chinese authorities to seek clarity and to encourage them to address areas of concern.
“China has consistently denied any targeting of Australia and spoken about its commitment to trade rules.
“In the spirit of their statements, we urge relevant Chinese authorities to address concerns of sectors like the seafood trade to ensure their goods can enter the Chinese market free of disruptions that threaten the quality of their products.”
China’s Foreign Ministry Spokesperson Wang Wenbin urged Australia to “do more things conducive to mutual trust” and to bring “bilateral relations back to the right track as early as possible” when asked about the lobster imports and potential disruption to Australian copper at a daily press conference on Monday night.
