The current natural resources boom is good news for Australia which has a plentiful supply of precious metals. Never before have mining corporations extracted so much iron ore, copper, gold or uranium and exported it worldwide, especially to China. But is Australia becoming dangerously dependent?
Many are already calling this region the "Saudi Arabia of the South". And that's not even exaggerated: The Gulf state controls more than 20pc of the world's oil reserves, but more than a third of all knownuranium reserves are located in Olympic Dam. It's the world's largesturanium deposit.
Australia provides the resources China needs so urgently for itseconomic miracle. In return, China provides Australia with all thecheap cooking pots, washing machines and cars it manufactures from themetal. "We would be crazy not to develop this relationship," saysAustralian Prime Minister John Howard.
Qualified workers are now in short supply. Many Australian corporations have to defer or even cancel business agreements. The lack of mechanics, architects or geologists is slowing the country's economic growth. Meanwhile, the price of housing has risen to astronomical levels. Economists warn that the real estate bubble could burst any time -- especially in the major cities, where most Australians live.
Many are concerned the economy is becoming dangerously one-sided and over-dependent on natural resources. Many people are already worried that Australia's mining companies are relying too heavily on China.
[Chinese Premier Wen Jiabao and his Australian counterpart John Howard have signed an agreement that facilitates uranium exports from Australia. The Howard administration cites special clauses in the agreement that the Chinese have to observe - pledging to use the uranium for civilian purposes only.]
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