Carbon Tax Plan To Cause Issues For Australian Mining Industry

Posted in Industry News on 26th July 2011

William Rowland are a leading supplier of Carbon.

The Australian federal government plan to introduce carbon tax, much to the dismay of the mining industry, to help cut down on greenhouse gas emissions. It has also been proposed that a Minerals Resource Rent Tax (MRRT) will be introduced adding to the mining industry's dissatisfaction to the government's decision. The mining industry are concerned that these proposed taxes will affect the sectors international competitiveness, and as they are reliant on diesel and electricity will be double taxed by the carbon tax and fuel rebate.

The Chief Executive of the Association of Mining and Exploration Companies (AMEC) Simon Benson believes that there is little environmental gain to be made from this proposition, but will cause many problems for the industry such as inflation on carbon and increased overheads creating uncertainty for investors.

AMEC do support the cause to reduce greenhouse gas emissions, however they do not believe that this is the solution to the ever-growing problem to the environment.

Steelmakers have been given $300 million to assist the industry to adapt to the new carbon tax demands. The Canberra government are targeting the 500 worst polluting enterprises, but opinion polls show that the carbon tax proposal is unpopular. Opposition parties have pledged to make the 2013 election a referendum on the issue.

Despite Australia only having a population of 22 million they generate more carbon pollution per capita than any other developed country due to their heavy reliance on coal-fired power stations.

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