In today’s show I explore the recent news that Australia is handing $2.5 billion ‘bailout’ to Rio Tinto, because the company doesn’t want to pay the energy bills at the massive aluminium smelter it controls in Tomago.
The smelter itself consumes a staggering 12% of all the electricity used in New South Wales, a substantial portion of which was already being subsidized by the state. But with that subsidized energy contract due to expire in 2028, a new arrangement was needed. With Rio-Tinto threatening to close the smelter if they don’t get a good offer.
The agreed-upon “solution”? Hand Rio Tinto $2.5 billion of public money. No strings attached. No guarantees required. No stake in the company or share of future profits. Essentially, the citizens were just robbed by the government, for the benefit of a private corporation. One which produced a $10 billion profit after tax last year.
Whilst that in itself is an astonishing story, there is much more going on here than meets the eye. The smelter produces around 590,000 tonnes of aluminium a year, 90% of which goes to China. This didn’t come up in the public debate around the smelter. What the government told the public that by bailing out the plant, they are protecting Australian jobs and Australian manufacturing from being stolen by—China.
A clear misdirection. As is the notion that the $2.5 billion will be used to make it possible for the Tomago smelter to run entirely on renewable energy by 2033. Of course. This too is another gift to China. But wait, there’s more. Because the company at the heart of this deal, Rio Tinto, while officially presented as a British-Australian mining company, is anything but.
So in tonight’s video, I dig into the deeper meaning of the story and explain why the real headline is not that Australia bailed out Rio Tinto, but that Australia bailed out the CCP. Which itself raises a much bigger question: just how deeply has the land down under already been infiltrated by China?
For paid members, I’ll be publishing a report in the coming week on how the mining landscape is changing as governments increasingly intervene in the sector and, in some cases, look set to take direct stakes in their nations largest miners.
I will explore what does this mean for us as investors? Where are the risks that might destroy your portfolio of miners, and equally, where are the opportunities? How does all of this connect to the financial reset?
If you’re an investor in gold and silver miners or commodity plays, this is one of the most important reports you’re going to read this year.
Help me spread this important message…press ♥️ and restack to alert others.
IS YOUR PORTFOLIO READY?—SUMMER STRATEGIZING CONSULTATIONS
As we move into Autumn, the risk of a major market correction is rising. That brings danger, but also significant opportunity for those who are prepared. For that reason, I am offering a special members-only discount for my Summer Strategy Consultation.
This is a one-to-one consultation designed to help you assess your portfolio risk, discuss the opportunities I am preparing for heading into autumn in gold, silver, the miners and commodities.
The consultation can also be used to ask questions about the Great Taking, gold and silver miners, precious metals, or broader Plan B strategy.
Spaces are limited. To secure your spot please use the link below.
