China will look to reduce it’s dependence on Australian iron-ore according to a report in The Australian Financial Review.

The communist nation is instead moving to boost it’s own domestic product of iron-ore, and increase investments in other overseas mines.

“For a long time China has been very frustrated by the fact that it completely relies on Australia, and Brazil to some extent for it’s iron-ore,” Mike Smith, North Asia Correspondent at The Australian Financial Review, said on 6PR Breakfast.

“It uses more iron-ore than any other country in the world, (it has) a massive steel industry, and it just can’t produce it’s own.

“This frustration has increase over the last year, because iron-ore prices have been so volatile, and they’ve been pretty high.

“And now China’s additionally motivated by the fact that Australia and China aren’t getting on, it doesn’t want to do us any favours anymore so it’s sort of desperately looking for alternative sources of supply.”

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