Ridiculous to suggest that governments should favour some...

Ridiculous to suggest that governments should favour some producers over others ( particularly high cost producers over low cost producers).
BHP and RIO are ensuring that they survive by being lowest costs producers, and they ensure that Chinese govt knows that there will be plenty of supply at a reasonable price even if Chinese mines close. So China can allow (or cause) their own higher cost mines to close.
BHP and RIO pay Australian taxes (mining tax/royalty and company tax).
Reducing production from BHP and RIO would reduce AU govt tax income, and would not help high cost AU producers to survive - stupid to suggest it would.
And remember that for every $100 that BHP or RIO reduces its costs (in the absence of other changes), that is $100 more gross profit, for which the AU govt gets $30 company tax!

Oh, and on ARI, it has high grade ore, profitable at current I/O price, it is managing its costs, and has other good businesses - it will do well (just terrible about how the Board has managed capital raising)
DYOR