Australia’s coal-mining companies face costs of about A$5 billion ($3.5 billion) in the first five years of the nation’s planned emissions-trading system, threatening jobs and investment, an industry group said.
Additional costs will increase job losses beyond the 3,000 reductions so far due to the commodity-market slump, Ralph Hillman, executive director of the Australian Coal Association, said today in Sydney. As many as 10 mines risk closure because they won’t be able to pass on the costs to customers, he said.
Australia is due to introduce a national emissions trading system on July 1, 2010, to help reduce gases blamed for global warming. Woodside Petroleum Ltd., operator of Australia’s biggest liquefied natural gas project, Caltex Australia Ltd. and CLP Holdings Ltd.’s TRUenergy Pty unit are among companies that have said the system won’t cover their increased costs.
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