we think that we can make more money by making steel and selling it -
traditionally a low margin low profit business
so - the plan is to use Aussie government money to build mega steel mills
Buy the ore that is owned by foreign companies and put it through Australian owned mills to make marginal profit - and, quite probably a loss. (and, yes, the ore is owned by foreigners once it's dug up).
this would result in being a global provider of steel - which would not move consumption and demand at all - it would just remove some steel sales from other places - IF we took sales away from them - which is a bit iffy at this stage
if one of those places is China - then, Australian iron ore sales to china would decrease - and hence, the royalties on sales of iron to china -would decrease, but the royalty flow would stay the same overall because the royalties would still flow from the same amount of iron that was dug up by the same foreign companies who dig up the dirt and sell it in Australia
and for the privilege of this almost pointless exercise - we get to pay about 50 billion and end up with yet another dirty industry
gosh- buggah -------- why didn't I think of this one - it's a doozey
