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MORE than 2000 workers will be axed and two coalmines prematurely closed if the Federal Government’s emissions trading scheme is passed in its present form, according to Anglo American chief Cynthia Carroll.
Speaking in Brisbane, Ms Carroll warned of the job losses but commended Australia on establishing its carbon pollution reduction scheme and showing leadership on climate change, something she said was ‘’sorely needed” in other countries.
As the Government revises its legislation before bringing it back for a Senate vote in November, Ms Carroll called on Prime Minister Kevin Rudd to work with industry on drafting changes to the bill.
She said the Government needed to make key amendments such as excluding coal fugitive emissions – those produced during mining – until there was technology to eliminate them.
Transitional help for the coal industry was also required, she said, as well as help where mines could not pass through the costs of the scheme due to forward contracts.
”Give the private sector these three things … and we’ll be far better placed to make our investment choices,” Ms Carroll said. ”Dealing with these design issues is critical if the CPRS is to provide a pathway to a managed transition in the carbon intensity of the Australian economy.
”In Anglo American alone we risk premature closure by 10 years of two major mines and job losses of more than 2000 people. Not to mention royalties of over $1 billion lost to the Government.”
Ms Carroll said the world had seen the worst of the economic downturn but that the mining sector would continue to be affected by tight financing conditions. ”This will impact the funding and timing of many potential mines and expansions, constraining supply as economic growth returns,” Ms Carroll said.
Commodity prices had bounced back, she said, as the near-term outlook improved faster than most expected.
”But there are still some question marks over the sustainability of the recovery,” Ms Carroll said. ”Continued deleveraging by households, companies and banks and the shadow of rising unemployment and large budget deficits in the major Western economies are still a great concern.”
Ms Carroll did not speak about rival miner Xstrata’s persistent campaign to merge with Anglo.
