Steel deal shows Australian firms competitive, PM says

CANBERRA, May 11 (Xinhua) -- Australian Prime Minister Kevin Rudd said on Monday that the awarding of a 20 million Australian dollars (14.6 million U.S. dollars) destroyer contract to BlueScope Steel showed Australian companies can win defense contracts against the world's best.

"This is a great achievement. It shows not only can Australian companies compete on defense projects with the best in the world, they can win and win on their merits," Rudd said in a statement.

Asked if the planned emissions trading scheme would affect BlueScope, Rudd said the company had indicated it welcomed the government's announcement of a slower start to the scheme, which was now due to start in July 2011 instead of a year earlier.

"The government has great confidence in the industry's future and the company's future," Rudd was quoted by the Australian Associated Press as saying.

Rudd said he was confident Australian companies would be heavily involved in the 8 billion Australian dollars (6.13 billion U.S. dollars) destroyer project.

"I'm confident there's going to be maximum delivery of Australian project content," Rudd said.

Rudd announced on Monday morning that Bluescope Steel had won the contract to supply steel for the Australian navy's three new air warfare destroyers.

The contract will run over six years with BlueScope Steel to produce around 3,000 tonnes of steel per ship.

BlueScope Steel is a flat product steel producer with operations in Australia, New Zealand, Asia, the Pacific and North America.

Special Report: Global Financial Crisis

Australia is not the only nation in deficit: PM

CANBERRA, May 11 (Xinhua) -- Australia was not the only nation that fell into deficit due to the global financial crisis, Prime Minister Kevin Rudd said on Monday.

"There is a global recession. Every government around the world is engaged in temporary borrowings for temporary deficits in order to plug the gap which has been left by a private sector in retreat, and to do so temporarily," Rudd told reporters in the New South Wales city of Wollongong.

According to the Australian Associated Press, the federal budget, due to be handed down on Tuesday, has been expected to include a deficit of at least 60 billion Australian dollars (40 billion U.S. dollars) for 2009/10.

Special Report: Global Financial Crisis

BlueScope Steel Australia awarded navy contract

CANBERRA, May 11 (Xinhua) -- Australian Prime Minister Kevin Rudd announced on Monday that Australia's steel producer BlueScope Steel was awarded a 20 million Australian dollars (14.6 million U.S. dollars) contract to supply steel for Australia's three new navy air warfare destroyers.

"This is a great achievement. Australian steel for Australian ships for Australian defence, that's what we're here today to celebrate," Rudd told reporters.

According to the Australian Associated Press, the contract will run over six years with BlueScope Steel to produce around 3,000 tonnes of steel per ship.

"Through this new contract they (BlueScope) will support jobs for Australian workers and flow-on economic benefits for their communities," Rudd said.

Rudd said the 8 billion Australian dollars (6 billion U.S. dollars) project would see the first of the three ships delivered in 2014, the largest defence project in Australia's history.

BlueScope Steel is a flat product steel producer with operations in Australia, New Zealand, Asia, the Pacific and North America.

Australia approves Ansteel's additional stake in Gindalbie

CANBERRA, May 8 (Xinhua) -- Australian Treasurer Wayne Swan announced on
Friday his approval on the Chinese steel maker, Anshan Iron and Steel Group
Corporation (Ansteel)'s acquisition of an additional stake in Australian iron
ore miner Gindalbie Metals Ltd.

Ansteel had agreed on a number of undertakings that would support
Australian mining jobs and protect Australia's investment participation in the
Chinese resources market, Swan said.

"My approval under the Foreign Acquisitions and Takeovers Act 1975 is
conditional upon Ansteel supporting the wider development of infrastructure in
the Mid-west (of Australia), and maintaining agreed levels of Australian
participation in a green fields joint venture in China's Liaoning Province,"
Swan said in a statement.

Swan said this foreign investment decision has allowed Ansteel to have a
stake of up to 36.28 percent in Gindalbie, conditional upon legally enforceable
undertakings by Ansteel.

Ansteel was also a 50 percent partner in a joint venture with Gindalbie to
develop the Karara Iron Ore Project.

The Karara Iron Ore Project has been a 1.8 billion Aust dollars (1.4
billion U.S. dollars) development in the Mid-west region of Western
Australia.

Global financial crisis hits Australian gov't revenue: treasurer

Special Report: Global Financial Crisis

CANBERRA, May 3 (Xinhua) -- Due to global financial crisis, projected Australian federal government revenue dropped by more than 100 billion Australian dollars (72 billion U.S. dollars) since the last budget, Treasurer Wayne Swan said on Sunday.

"I think it (the shortfall) has got substantially worse," Smith told ABC TV.

A year ago, Swan said the International Monetary Fund (IMF) had been predicting world growth of four percent.

A week ago, it has downgraded its forecast to minus 1.3 percent.

"So, essentially, the whole world has turned upside down and, of course, that means global growth is contracting," Swan said.

When Swan has delivered Labor's first budget in 13 years in Maylast year, Treasury has been forecasting Australian federal government revenue of 319 billion Australian dollars (233 billion U.S. dollars) for the 2008/09 financial year.

But that was before the global financial crisis pushed Australia into recession.

Between the time of the last budget in May 2008 and February 2009, there has been a government revenue shortfall of 115 billion Australian dollars (84 billion U.S. dollars), Swan said.