News 
 Local News 
 News 
 General 
 Hunter mines to feel carbon tax pain 

Hunter mines to feel carbon tax pain

21 Jun, 2011 12:00 AM
MOST of the Hunter's underground mines would be hit by a carbon tax on fugitive emissions, new research has shown.

The Australian Coal Association released a report last week predicting mine closures and thousands of job losses if fugitive - or escaping - emissions of greenhouse gases were included in the proposed federal carbon tax.

The association's report has been criticised for exaggerating the impact but independent research shows a carbon price of $20 a tonne would add about $2 a tonne to the production cost of coal selling for $120 a tonne.

Lake Macquarie underground mines, especially the former Powercoal mines operated by Thai company Centennial Coal, were identified by the NSW Minerals Council as the most affected.

But inquiries by the Newcastle Herald have identified another seven underground mines that would be likely to incur the tax penalty, based on figures lodged with development applications and environmental registers.

They are Austar, Ashton, Blakefield, Dartbrook, Narrabri, Ravensworth and West Wallsend undergrounds.

While arguments prevail about the degree of "gassiness" - former mineworkers' union district president Mick Watson said last night the Hunter was nowhere near as "gassy" as the Illawarra - coal companies say fugitive emissions remain a problem in general.

While the amount of methane and carbon dioxide in coal seams varies according to the geology, it is generally the case that the deeper the seam the greater the concentrations of gas.

The federal government says fugitive emissions from coalmining account for between 5 per cent and 7 per cent of Australia's total greenhouse gas emissions, with coalmining "the fastest growing" of all fugitive emissions.

A recent conference paper by Centennial Coal said NSW underground mines produced about 10 million tonnes a year of carbon dioxide equivalent - or more than half the national total of 19 million tonnes from fugitive coal emissions, with Central Coast mine Mandalong accounting for 650,000 tonnes a year.

Print
Increase Text Size
Decrease Text Size

comments


Date: Newest first | Oldest first
The greatest cost to Hunter residents is the about $780 million mining royalties created in the Hunter and expended in Sydney.

Moreover, this Coal Association 'report' has been shown to be in error in many of the underlying assumptions & calculations.

Hunter residents are entitled to more than the current pittance reluctantly spent by the Sydney-based NSW Liberal government on improving out-dated and decaying infrastructure like health, education, roads & railways.

Posted by Machiavelli, 21/06/2011 7:17:57 AM, on The Herald
Oh my, so the coal companies may need to spend some of there billions if not trillions reaped from the resources of Australia. They should be encouraging this tax instead of fighting it.


Posted by AkTim, 21/06/2011 7:45:46 AM, on The Herald
A load of bunkum, all mines produce CO2 and CH4 not just underground mines. As the coal is uncovered the gases are released in an open cut, it is hard to measure because of the area uncovered that is not funneled into a ventilation shaft to be measured in concentrated amounts.
Posted by jimbob, 21/06/2011 7:49:57 AM, on The Herald
Who would believe the Australian Coal Association or the Minerals Council on their scare mongering for more carbon tax exemptions? With coal exports at record prices as stated, the affected mines have plenty of opportunity to explore methods of capturing methane. But like requests for covering loaded coal wagons as any normal transporter would expect, they will plead exemptions.
Posted by pablo, 21/06/2011 8:18:51 AM, on The Herald
Once again the mining companies go into scare campaign mode with a lot of hot air about mine closures and job losses. We heard the same when the Federal Government tried to implement its super profits tax and get the average Aussie a fairer share of the wealth being created. Do we really believe mines owned by Yanzhou Coal Mining Company Ltd of the People's Republic of China operate in our interest?
Posted by Obscene Wealth, 21/06/2011 11:58:44 AM, on The Herald
Carbon tax or mining tax the cost will eventually cascade down to average aussies. Just carbon tax will affect more aussies then a mining tax.

Carbon tax = 20% GST (at $30 a ton)


Posted by Taipan, 21/06/2011 12:57:35 PM, on The Herald
TAX US ALL TO SAVE PLANET EARTH!!!
Posted by Josh, 21/06/2011 2:20:59 PM, on The Herald

post a comment


Screen name  *
Email address  *
Remember me?
Comment  *
 
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.
PENALTY: Ashton mine would be one of those affected.
PENALTY: Ashton mine would be one of those affected.

Most popular articles


 
 
 
 


Newcastle Herald







Weather brought to you by:

Weatherzone

Classifieds

Front Page

Current Issue
Privacy Policy | Conditions of Use | Advertising Terms | Copyright © 2012. Fairfax Media.
 SEND...
 SAVE...
 SHARE...