A $1.3 billion package has been announced as part of the Federal Government's carbon price plan to support companies with high levels of fugutive emissions in the mining process.

 

However, coal mining companies will not be eligible for free emissions permits that have been promised other energy-intensive, trade-exposed industries.

 

The Prime Minister, Julia Gillard,  said the impact of a $23 a tonne carbon price on the industry will be low – around $1.80 per tonne of coal produced for coal mine fugitive greenhouse gas emissions. However, gassy mines will face significant cost pressures as the carbon price is introduced.

 

A $1.264 billion Coal Sector Jobs Package will assist the operators of these mines to support jobs and local communities, some of which rely heavily on coal mining employment. The Coal Sector Jobs Package will provide financial assistance over six years to Australia’s most pollution-intensive coal mines and assist them to reduce their pollution.

 

Under the package,  mines with fugutive emissions in 2008-09 of at least 0.1 tonne of CO2 equivalent  per tonne of saelable coal produced will be eligible for assistance. They will receive assistance for up to 80% of their fugitive emissions  exposure above the 0.1 tonne of CO2 equivalent per tonne  of saleable coal threshold.

 

The package will be designed to reward those coal mines that reduce their emissions, based on their historical emissions intensity. This means that if a mine operator takes steps to reduce carbon pollution it will be able to decrease its liability under the carbon price and pocket the assistance. The package will not be available to new mines or mine expansions.

 

A $70 million Coal Mining Abatement Technology Support Package will assist coal mines in developing and deploying new technologies to reduce their carbon pollution.

 

Funding will be provided through grants on a co-contribution basis.

 

Both the Coal Sector Jobs Package and the Coal Mining Abatement Technology Support Package will be administered by the Department of Resources, Energy and Tourism.

 

Further information is at www.cleanenergyfuture.gov.au.