The answer I got was that smelters are hugely expensive and last longer than the mines, and so it makes sense to build the smelter near the factories, and ship the raw materials to the smelter from wherever they are being mined currently, rather than building the smelter near the mines and then having to ship raw materials there anyway once the mines run out. I've always thought this was a bit dubious (why is commercially viable to build smelters in Korea but not Aus?), but it does kinda make sense.
So the problem isn't "not enough excess power" but "insufficient infrastructure" coupled with "insufficient government willpower to build a decent manufacturing base here".
https://en.wikipedia.org/wiki/List_of_countries_by_primary_a...
Of course Australia also sells a lot of bauxite to China.