Grange Resources to be dealt to be dealt costly carbon bill

AUSTRALIA'S biggest magnetite producer, Grange Resources, says it expects to pay almost $10 million a year in carbon tax and a further $1m as a result of the Gillard government's move to cut the diesel fuel rebate.

Grange managing director Russell Clark told the Diggers & Dealers conference in Kalgoorlie yesterday that the sector should be excluded from the carbon tax because it was an energy-intensive, trade-exposed industry.

Grange has forecast total costs next year of about $200m, meaning the carbon tax and reduction in the diesel rebate will represent a 5 per cent hit on Grange's Savage River magnetite mine in Tasmania.

The company's planned Southdown mine near Albany in Western Australia, which is predicted to come into production by 2014, was not included in the calculations but is also likely to be hit by a price on carbon.

Mr Clark said Grange would be unfairly penalised under the planned carbon tax from July next year because it would process the magnetite in Australia rather than offshore where no similar tax was imposed.

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http://www.theaustralian.com.au/business/news/grange-resources-to-take-10m-hit-from-carbon-tax/story-e6frg906-1226106987154