The coal miner considered most vulnerable
to Australia's carbon tax plan has sought to
halt an exodus of investors with a new
strategy for minimizing its greenhouse gas
emissions. According to The Sydney
Morning Herald, ASX-listed Gujarat NRE
has suffered a dramatic share price slide
this year amid predictions the carbon tax
could reduce profit margins from its New
South Wales coal business by up to
$16/metric ton. As Australia prepares to
vote on carbon legislation, Gujarat has
revealed hopes of keeping the carbon tax
impost below $3/mt.
Gujarat operates two coking coal mines
in the Illawarra region and is particularly
vulnerable to the carbon tax because of the
large volume of greenhouse gases released
as byproducts during its mining processes.
Fugitive methane emissions under the carbon
plan and will be included in the company
liability under the tax which takes
effect from July 1, 2012.
As featured in Womp 2011 Vol 09 - www.womp-int.com