Zirconium mining in Western Australia is among the most controversial operations in the world, mainly due to the global strategic concerns. China, which controls less than 1% of the world’s zirconium reserves, is still dependent on imports for the bulk of its consumption.
Australia, the leading supplier with a 41% share of China’s annual zirconium consumption, is also the world’s largest producer of this mineral. The use of zirconium in China’s hypersonic missiles and nuclear projects makes it vital for the country, which sees the military expansion as one of its main objectives.
And, what’s more, Chinese-backed companies control the majority of stakes in two Western Australian mines responsible for the production of large amounts of zirconium. Nevertheless, the Australian government has approved these investments, and, in fact, in one case, even granted a $160 million concessional loan to assist one mine coming into production.
Zirconium mining in Western Australia sparks global strategic dependence concerns.
How Are Australia’s Zirconium Exports Supporting China’s Defence Goals?
Zirconium from Australia is of great concern to China’s strategic capabilities. It is a heat-resistant material with a very high melting point of more than 1800 °C, so it hypothetically can be used for the manufacture of missiles that can travel at over 5 times the speed of sound. Besides, it is a part of the zirconium sponge that encases nuclear fuel rods, mostly for civilian use, differentiating reactors and nuclear submarines.
In this regard, the so-called military-civil fusion policy in China makes it hard to discern between the civil and defence sectors. As soon as the Australian zirconium enters China, its final application is almost impossible to trace. According to Four Corners, part of China’s zirconium is re-exported to Russia, where it is used in missiles and nuclear components.
Zirconium Mining Western Australia Links To Russia’s War Machine
From the year leading up to February 2025, China’s exports of zirconium to Russia increased by more than 300% and reached nearly $70 million. This trade has a link to one of the Australian miner’s parent companies.
Zirconium is one of the materials used by Russia’s state nuclear corporation, Rosatom, to manufacture cladding for the nuclear fuel rods and the missiles, including the Zircon model that was recently tested in Ukraine, and which is classified as hypersonic.
David Kilcullen, a military strategist, advised that export supervision should be tightened, and he emphasised the necessity of transparency concerning the minerals that could be used in nuclear or missile production. Defence analysts refer to this transfer of material as a sign of Australia’s vulnerability.
China’s zirconium exports to Russia surged 300%, fueling nuclear production.
Australia Zirconium Exports Face Strategic Contradictions
Australia’s partnership with the US to curb China’s influence in the critical minerals sector is getting stronger, but zirconium continues to be one of the supplies to Beijing. The Prime Minister of Australia, Anthony Albanese, recently entered into a minerals supply agreement worth $13 billion with the US President Donald Trump, which was aimed at securing US supply chains. However, Chinese companies still have a stronghold over the zirconium production in Western Australia.
Richard Marles, the Minister of Defence, supported the current situation, claiming that cutting off the zirconium trade would not put an end to military use all over the world. On the contrary, as conflicts heat up in the Indo-Pacific region, this trade-off between security and economic interests is becoming more and more precarious.
What Drives China’s Reliance On Zirconium Supply From Australia?
Zirconium imports from China have a double function in their industrial and military activities, the gravity of which can be seen in the way Beijing is investing in overseas mining. Chinese company LB Group owns a substantial part of ASX-listed Image Resources, which transfers 100% of its output to China. The report of LB Group’s financial statement mentions significant backing by the Chinese government for the production of nuclear-grade zirconium.
The Thunderbird Mine, close to Broome, is yet another source, which is co-owned by China’s Yansteel. The mine, which supplies only to China, has been granted a loan of $160 million by the government to start production.
China’s zirconium imports serve dual industrial-military roles, boosting global influence.
Can Australia Balance Trade And National Security?
In the opinion of the analysts, Australia needs to rethink the relationship between critical mineral exports and the defence strategy. According to ex-naval officer Jennifer Parker, the government should be asking questions about what is being traded, with whom, and at what security cost. The dual-use nature of zirconium makes it hard to monitor, as it is used in both consumer and military sectors.
Not only Australia but also the world is looking at the country as a critical minerals giant, and thus, zirconium mining in Western Australia will not lose its importance. The question is how this important resource can be used to bolster the wealth of the nation without compromising its security interests.
Also Read: Osmond Resources Hits Key Stratigraphy in Maiden Drill at Orión EU Critical Minerals Project
FAQs
Q1. What is zirconium used for?
Zirconium is used in various applications like making ceramics, pigments, and nuclear fuel rods, as well as providing heat resistance to hypersonic missiles.
Q2. Why does China depend on Australia for zirconium?
China holds less than 1% of the world’s zirconium deposits and thus has to depend on imports, with Australia being the major supplier, accounting for 41%.
Q3. Which Australian mines are supplying zirconium to China?
Image Resources and the Thunderbird Mine in Western Australia are the two mines that supply the entire output to China.
Q4. Is the zirconium mining in Australia governed by regulation?
Yes, it is covered by regulations, but the export controls are not very rigorous. Current laws allow Chinese investment and exports with few restrictions.
