http://www.theaustralian.com.au/business/news/grange-resources-to-take-10m-hit-from-carbon-tax/story-e6frg906-1226106987154
Grange managing director Russell Clark told the Diggers & Dealers conference in Kalgoorlie yesterday that the sector should be excluded from the carbon tax because it was an energy-intensive, trade-exposed industry.
Grange has forecast total costs next year of about $200m, meaning the carbon tax and reduction in the diesel rebate will represent a 5 per cent hit on Grange's Savage River magnetite mine in Tasmania.
The company's planned Southdown mine near Albany in Western Australia, which is predicted to come into production by 2014, was not included in the calculations but is also likely to be hit by a price on carbon.
Mr Clark said Grange would be unfairly penalised under the planned carbon tax from July next year because it would process the magnetite in Australia rather than offshore where no similar tax was imposed.
Magnetite has a lower iron content than traditional hematite ores and must be processed before it can be sold to steelmakers.
"We will get canned in Australia because we do the value-add here," Mr Clark said.
Mr Clark said Grange, through its membership of the MagNet alliance of magnetite companies, continued to lobby the government, but it was unclear whether the sector would be excluded from the carbon tax.
"I just get this sense that it's about the mining industry's ability to pay," he said after his presentation to the conference.
Grange's complaints about the fresh imposts came as miners again lined up at the conference to criticise the Gillard government's carbon and mining taxes that will hit many resources projects.
Gary Halverson, regional president of Barrick Gold, said the carbon tax was likely to have a $US12 an ounce impact on the world's largest goldminer.
"It is not insignificant but it is manageable," he said.
Association of Mining and Exploration Companies chief executive Simon Bennison said it was clear from feedback at Diggers & Dealers that the industry was still opposed to the proposed mining and carbon taxes.
"Whatever way you look at it, the minerals exploration and mining sector will be faced with extra costs in doing business as a result of both taxes," he said.
Mr Bennison said there was rising anger among junior miners over the decision to reduce the off-road diesel fuel rebate by 6c a litre.
He said it would hit small mining companies in remote areas, and could cost hundreds of thousands of dollars a year.
"These companies will be seriously discriminated against as a result," Mr Bennison said.