A Free-Market Energy Blog

Wake Up Australia! Green De-industrialization Threat Remains

By Viv Forbes -- December 17, 2014

“The war on carbon energy, the carbon tax, the renewable energy targets, escalating electricity costs, and the voices in Parliament calling for Emissions Trading Schemes have all unnerved our big users of carbon fuels and electricity. Smelting and refining have become threatened industries in Australia.”

Progress on Climate Policy has been made in Australia with the repeal of the carbon tax, closure of the Climate Commission, and increasing skepticism about climate alarmism and related energy-market interventions. President Obama, beholden to radical U.S. greens, even took a shot at Australia’s climate pivot during his trip to the country last month, generating negative reactions from many Australians.

Nonetheless, ‘green’ policy in Australia has caused a good deal of industrial damage and business uncertainty that must be reversed with a full government commitment to climate realism and rational energy policy.

Lessons from History

Back in Dec 1941, Japan suddenly attacked the huge US Naval base at Pearl Harbour. Three days later, two “invincible” British warships, “Repulse” and “Prince of Wales” were sunk by Japanese planes off Malaya. Soon Japanese armies were rampaging through Asia towards Australia.

By Feb 1942, the British fortress of Singapore surrendered and Japanese bombs were falling on Darwin. By Sept 1942 the Japanese army had slashed their way down the Kokoda Track and could see the lights of Port Moresby. They were looking across Torres Strait to Australia.

At that time, most of our trained soldiers were fighting Rommel in North Africa or in Japanese prison camps. Suddenly Australia was on its own and needed to defend itself with what we had here.

Armies need soldiers, weapons, bullets, vehicles, fuel, food (and cigarettes). Soldiers volunteered and were conscripted. Australian conscripts formed part of the force that met the Japanese on the Kokoda Track. Enfield Rifles, Bren Guns and Vickers Machine Guns were produced in large numbers at the Small Arms Factory at Lithgow supported by feeder factories in the area.

Motor oil was produced in limited quantities from oil shale at Glen Davis, but petrol was in serious short supply, and had been rationed since 1940. With the fall of Singapore, this shortage became severe, and charcoal burners suddenly appeared to keep cars and trucks moving. Kerosene was scarce so carbide lights were widely used. The demand for charcoal was so great that firewood became scarce so it was also rationed.

To conserve supplies for soldiers, rationing was introduced for tea, clothing, butter, sugar, meat and cigarettes. An immediate critical shortage was copper for cartridge cases and communications – we had mines producing lead, zinc, silver, gold and iron, but there was a critical shortage of copper.

Fortuitously, just before the Japanese attack on Pearl Harbour, an exploration drill hole at Mount Isa had struck rich copper ore.

Mount Isa was called on to avert a calamitous shortage of copper in Australia. With government encouragement, Mount Isa Mines made the brave decision to suspend the profitable silver/lead/zinc operations and convert all mining and treatment facilities to extracting copper.

The lead concentrator could be converted to treat copper ore, but the biggest problem was how to smelt the copper concentrates. Luckily the company had skilled engineers and metallurgists in the lead smelter. In a miracle of improvisation, scrap steel and spare parts were purchased and scavenged from old mines and smelters from Cloncurry, Mt Elliott, Mt Cuthbert and Kuridala and cobbled into a workable copper smelter.

In 1943 the first Mount Isa blister copper was produced. Production continued after the war when Mount Isa returned to extracting the then more profitable silver/lead/zinc. Later new plant was built enabling both lead and copper to be produced from this fabulous mine.

Lessons for Today

The war on carbon energy, the carbon tax, the renewable energy targets, escalating electricity costs and the voices in Parliament calling for Emissions Trading Schemes have all unnerved our big users of carbon fuels and electricity. Smelting and refining have become threatened industries in Australia, and closure of the Mount Isa copper smelter and the Townsville copper refinery has been foreshadowed.

Already six major metal smelting/refining operations have closed in Australia this century and more are likely. The closures have affected copper, lead, zinc, steel and aluminium – the sinews of modern industry.

And the car industry, with all its skills and tools, is closing Local production and refining of oil is also declining, while “lock-the-gate” picketers are trying to prevent domestic exploration and production of gas. More and more land and offshore waters are closed to exploration and mining, and heavy industry is scorned.

It was estimated recently that by next year, half of Australia’s oil refining capacity will have closed. In the event of a disruption to tanker routes, Australia has just 12 days of diesel supplies before city fuel and food supplies start to dry up.

We are losing the resources, skills and machinery needed for our own security, while we fritter precious resources on green energy, direct action, carbon capture and storage and other pointless anti-carbon chimeras. Our foolish green energy policies and the suicidal war on carbon fuels are killing real industry leaving us unskilled and defenceless – like a fat toothless walrus basking on a sunny beach.

Wake up Australia!

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