Hi Everyone,
The Carbon Tax announced today seemed to have the signs of a 'temporary peace offering' to the Coal Industry (sigh of relief…).
What are your thoughts on how the industry, and subsequently property prices in coal mining towns will be affected by the new tax (both short & long-term)?
Also, for other commodities industries, like LNG & CSG, will these be affected to the same extent, considering their less pollitive nature?
I was hoping that the 'educated' out there may share their knowledge & predictions with us all.
Thanks,
P.I.1Hi property investor 1
the first thing that is not clear in peoples minds is that their are two coal industries in Australia. 1. The coal power plants and the mines that produce coal for them and second is the coal mines that produce export quality coking and thermal coal.
In the first industry mentioned, it will be adversely affected. A place of good example is Morwell in VIC. They mine brown coal and burn it on site basically which produces electricity that victoria uses. This is one of the dirtiest operations in the country from what i can see. This industry will be taxed at the $23 pt as they are releasing carbon into the atmosphere.
The export coal operations that we see in QLD and NSW wont really be affected as the coal is shipped to the coast, exported and burnt offshore in the countries of use where there is no carbon tax imposed. So the mines will only be charged for the carbon that the extraction process puts into the environment which is minimal. This is the trucks, machines etc that are used. To give you an idea of the implications in the export coal industry, they pay about $24.20 per tonne in taxes, royalties etc. After the carbon tax is in effect the mines estimate they will pay approximately $25 pt. so for each tonne they produce and export they pay approx $.80c for the carbon pollution.
It is vital to remember that the Labor government have to pay the debt they put us into off. They are relying on mining to do this for them. They are not about to bite the hand off that feeds them. Even Bob Brown (who is anti coal mining) said that unfortunately coal mining in this country will not stop for the generations to come at least. And he is correct.
Does this help?
That is great feedback. Thanks for your comments. I still think there is much confusion out there on what the implications are for industry & mining.
I would welcome others feedback too.
Thanks Portfolio PI.
Regards,
P.I.1.the latest figure released yesterday is $1.20AUD per tonne of coal produced.
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