Reuters reported that mining giants warned Australia that its planned carbon reduction scheme could cost the industry as much as USD 25 billion through 2020, cut coal production by a third and send investment in that sector tumbling 13%.
Mr Seamus French, who runs the coal division of miner Anglo American Plc, said that "Australia is walking the plank."
Mr Ross Garnaut the adviser recommended that emissions should be taxed at AUD 26 a tonne for the first three years starting 2012 and then switch to a system whereby emissions permits would be openly traded and their price determined by the marketplace.
But the mining lobby reacted with dire warnings for the future of the country's biggest export industry and said the new scheme, if fashioned along the lines of Mr Garnaut's recommendations, would raise the nation's sovereign risk.
Another global miner and major coal industry operator Xstrata Plc told the conference that imposing a cost on carbon emissions threatened Australia's reputation as stable and transparent place to do business.
Mr Mick Davis CEO of Xstrata said that "Sovereign risk is an important consideration in this regard, both for initial investment and when considering the courageous investment of billions of dollars in magnitude for returns which are only realized quite some time in the future. Without this conviction, the raging bulls of the boardrooms become nothing but brooding cows as companies are milked but not satisfied."
Anglo's Mr French said Australian coal production would tumble 33-35 percent if the new carbon pricing scheme was similar to the government's first carbon-reduction plan, a wholly market based scheme that was defeated by the previous parliament.
He said coal investment would fall 13%, 9,500 coal industry jobs would be lost and the value of investment in coal projects would fall by an average 45% in 10 years.
Mr Peter Johnston, head of miner Minara Resources and chairman of the Minerals Council of Australia, said that "Australia, a nation that produces just 1.4 percent of global emissions, is looking down the barrel of the most costly carbon pricing scheme in the world. We can not afford to get the current carbon pricing scheme wrong."
Australia's climate adviser Mr Garnaut said AUD 26 a tonne carbon price was necessary to achieve Australia's commitment to cut emission by 5% by 2020. He said such a price would raise AUD 11.5 billion in its first year, 2012-13.
Resource Minister Mr Martin Ferguson said the government would release details of a balanced carbon price in July 2011 and while it would weigh Mr Garnaut's recommendations that did not mean the government would automatically adopt them.
Mr Seamus French, who runs the coal division of miner Anglo American Plc, said that "Australia is walking the plank."
Mr Ross Garnaut the adviser recommended that emissions should be taxed at AUD 26 a tonne for the first three years starting 2012 and then switch to a system whereby emissions permits would be openly traded and their price determined by the marketplace.
But the mining lobby reacted with dire warnings for the future of the country's biggest export industry and said the new scheme, if fashioned along the lines of Mr Garnaut's recommendations, would raise the nation's sovereign risk.
Another global miner and major coal industry operator Xstrata Plc told the conference that imposing a cost on carbon emissions threatened Australia's reputation as stable and transparent place to do business.
Mr Mick Davis CEO of Xstrata said that "Sovereign risk is an important consideration in this regard, both for initial investment and when considering the courageous investment of billions of dollars in magnitude for returns which are only realized quite some time in the future. Without this conviction, the raging bulls of the boardrooms become nothing but brooding cows as companies are milked but not satisfied."
Anglo's Mr French said Australian coal production would tumble 33-35 percent if the new carbon pricing scheme was similar to the government's first carbon-reduction plan, a wholly market based scheme that was defeated by the previous parliament.
He said coal investment would fall 13%, 9,500 coal industry jobs would be lost and the value of investment in coal projects would fall by an average 45% in 10 years.
Mr Peter Johnston, head of miner Minara Resources and chairman of the Minerals Council of Australia, said that "Australia, a nation that produces just 1.4 percent of global emissions, is looking down the barrel of the most costly carbon pricing scheme in the world. We can not afford to get the current carbon pricing scheme wrong."
Australia's climate adviser Mr Garnaut said AUD 26 a tonne carbon price was necessary to achieve Australia's commitment to cut emission by 5% by 2020. He said such a price would raise AUD 11.5 billion in its first year, 2012-13.
Resource Minister Mr Martin Ferguson said the government would release details of a balanced carbon price in July 2011 and while it would weigh Mr Garnaut's recommendations that did not mean the government would automatically adopt them.
(Sourced from Reuters)
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