In July 2011, the Australian Government announced a carbon tax for selected businesses of A$23 per tonne of carbon dioxide equivalent (CO2-e). The proposed price will apply from 1 July 2012 and will increase at 2.5 percent plus inflation annually until 1 July 2015, when an Emissions Trading Scheme is introduced.
The proposed tax will be incurred by individual facilities that have direct annual greenhouse gas emissions of 25,000 tonnes CO2-e a year or more, excluding emissions from transport fuels and some synthetic greenhouse gases.
OZ Minerals is not expected to incur a direct carbon tax impost. It appears that OZ Minerals will see increased costs on fuel used in vehicles via a reduction in the fuel tax rebate of about 6 cents per litre.
It appears likely that a further indirect cost from the carbon tax will be passed on by suppliers to OZ Minerals from scope two and three emissions, including electricity and increased transport costs such as rail freight.
The costs for OZ Minerals associated with the carbon tax proposal are estimated to be approximately A$10 million per year.