Australia's Industrial Policy Redefined: A New Era of Strategic Interventions

The Australian federal government has unveiled a substantial AUD 600 million rescue package for Glencore's copper operations in Mount Isa and Townsville, signalling a transformative change in the nation's industrial policy. This intervention comes after the preceding AUD 2.4 billion bailout for Whyalla steelworks and assistance for Nyrstar's metals smelter.

Historically apprehensive about market intervention, this move represents Australia's definitive departure from the long-standing neoliberal policies that prioritized market-driven resource allocation. The shift reflects a broader global retreat from free-trade principles, notably since the 2008 financial crisis, as countries like China promote state-led models.

The new approach raises critical questions about criteria for bailouts, expected public returns, and how to effectively prioritize minerals essential for technology and energy transitions. With potential collaboration with regional allies, Australia must navigate a complex geopolitical landscape to devise a coherent economic strategy for the future.

(With inputs from agencies.)