Their concern is around packaging, not security. So a lockable steel container is zero advantage.
5kg is the threshold for the ammunition to be carried under the limited quantity (personal quantity) limits. Anymore and the airline requires a shippers declaration and has to be stored and separated accordingly and all the other complex (expensive) requirements.
Much like they wont remove a single can of pressurised deodorant from your checked bags. However, if you checked in a carton of them with your luggage, the carton would then require a DG declaration, have packaging, labelling, separation and storage requirements.
They just want to see all the ammunition separated individually from each other round either by cardboard in an original packet, or something like an MTM case.
I guess their process is an extension to the DG declaration every passenger makes at check in.
Also, FWIW Jetstar are the devil.
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