The Minister for Resources and Energy and Tourism, Martin Ferguson AM MP, has told industry leaders from Australia and China that business between the two countries is good and set to get better.
Minister Ferguson said: “With the rebound in China’s demand for mineral and energy resources, Australia’s challenge now is to secure a growing share of the investment and export opportunities this brings. That means we have to clear our export infrastructure bottlenecks and increase our supply capacity. Nowhere is this more important than in Queensland’s coal supply chain.”
Minister Ferguson today addressed the Australia China Business Council’s Canberra Networking Day at Parliament House, as did the Minister for Foreign Affairs, Stephen Smith, and the Minister for Trade, Simon Crean.
Minister Ferguson said: "China is now our largest two-way trading partner. Trade in two-way goods and services with China amounted to $83 billion last financial year, with one-third of Australia’s mineral exports going to China. Mineral and energy exports to China were worth more than $33 billion last financial year.
Minister Ferguson singled out liquefied natural gas (LNG) in particular as an opportunity for trade growth, noting that global demand for LNG is forecast to double by 2030.
“China’s investment in LNG receival terminals is growing rapidly with three currently in operation, four under construction and many others in the pipeline,” he said. “Here in Australia, we are also investing heavily in new LNG production with the first Pluto cargo due in 2011 and Gorgon now under construction to come on stream in 2014. The Browse, Ichthys, Prelude, Wheatstone and Sunrise projects are well-advanced in planning as are Gladstone’s coal seam methane-based LNG projects. China is front and centre in many of these new LNG investments and export opportunities.”
In 2008-09, more than $26 billion of Chinese investment was approved in the Australian resources sector.
Minister Ferguson said: “On the investment front, I believe both China and Australia are committed to finding a mutually beneficial way forward and we are having many more successes than failures.
“Earlier this year, I had the pleasure of speaking at a ceremony formalising the merger between Yanzhou Coal Mining Limited and Felix Resources.
“This $3.5 billion acquisition represents one of the top 10 mergers and acquisitions undertaken in Australia in 2009 and represents a good deal for both Australia and China.”
Minister Ferguson also highlighted that Australia was one of the first nations to receive Approved Destination Status from China facilitating group leisure travel from China to Australia. This program is now in its 11th year and China regards Australia as a model partner in the scheme.
Minister Ferguson said: “The program has been a great success in ensuring our Chinese guests are protected from unethical business practices and enjoy a high quality tourism experience in Australia.”
Australia’s Chinatowns, Chinese Heritage Museums and Chinese New Year Celebrations are integral to Australia’s appeal as a multicultural tourism destination. More than 350,000 Chinese visitors came to Australia in 2008/09 however annual arrivals from China are expected to increase to more than three-quarters of a million in 2018.