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Mining in the Pilbara Region - Essay Example

Chinese mining activity, in Australia, is inelastic because it does not improve Chinese economy by any substantial amount. China has always poured billion of U.S. dollars, in the Australian quarries, which has helped Australia enjoy national unemployment rate of about 5.1 percent and escape the global recession while the Chinese government records no significant change, in its economy, in relation to its mining activities, in Australia. Australian chief economists have admitted that their trade relations with China has added over $3,400 to every Australian household, every year, through imports, exports, and foreign investments. For example, through Chinese resource investments, Australia saw a $3 billion of foreign investment, $42.4 billion in export demand, and nearly $4.9 billion in other project financing, in July 2009. Australian government has realized that Chinese mining industries have significantly improved its economy. This is the reason why Australian government always strives to improve and maintain its political and trade relations with China.

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Pilbara mining project is one of the largest projects that China has financed in a boom that has both benefited and troubled Australia. China’s high demand for mineral ores has significantly transformed it to world’s second-largest miner…
Mining in the Pilbara Region
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