Chinese companies are the largest shareholders in two Australian mines producing minerals vital for Beijing’s hypersonic missiles and nuclear programs, helping it overcome “severe challenges” to accessing key resources.

In a rare admission of its vulnerability, China says it depends on imports for its supply of zirconium, a little-known critical mineral. Australia is the world’s largest producer and supplies China with 41 per cent of its imports.

Not only did Australian regulators allow Beijing-backed companies to become major shareholders in the two Western Australia mines, the federal government even gave one of them a $160 million soft loan to help it into production.

Australia is supplying these raw materials vital for China’s military build-up, while at the same time signing up to be a partner of choice for the United States as it seeks to break Beijing’s stranglehold over the processing of rare earths and critical minerals.

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