Mining, People and the Environment > Enviromine > Carbon tax concerns sector

Enviromine

The Australian Coal Association (ACA) said it expected that the country’s proposed carbon tax would put thousands of jobs at risk and push billions of investment dollars offshore, following a study of more than 85% of the country’s coal producers.

Ralph Hillman, ACA executive director, warned the research showed that coal mines could close if the federal government persists with plans for the tax.

He said: “The ACA supports putting a price on carbon but not one that causes Australian mines to close and shift production to other countries with no reduction in global greenhouse-gas emissions. The cost of the carbon tax to Australian coal mines is expected to be around A$18 billion [US$19.2 billion] with the first nine years (until 2021) of the tax.”

Australian Prime Minister Julia Gillard (shown above) has proposed implementing the emissions-trading system on July 1 next year. The tax would operate under a fixed rate for the first three to five years before full trading begins.

Western Australia Premier Colin Barnett has also raised concerns that the tax could affect the state’s emerging magnetite iron-ore sector.

A number of mining companies have also spoken out about the tax, including Rio Tinto and mineral-sands producer Iluka Resources Ltd.

In an interview with The Weekend Australian, Rio Tinto chairman Jan du Plessis said he was concerned about the impact on Australian ‘trade-exposed’ businesses which would be put at a disadvantage compared to businesses in China and the US.