Emkay Global Finance Services has come out with its report on metals & mining sector.
Australia carbon tax- a green initiative: Australia announced yesterday its carbon tax plan in an effort to help fight climate change. Under the scheme to begin on July 1, 2012, about 500 of Australia's top polluters will pay a fixed price, starting at A$23 (~US$25) per tonne of their carbon dioxide emissions for the first three years which will rise by 2.5 per cent annually until it is replaced by an emissions trading scheme in 2015.
Under the scheme, it would affect the coal miners and large power consuming companies (eg aluminium smelting) the most. The carbon tax of A$23 per tonne of carbon dioxide equivalent emission would translate to about A$2 per tonne of coal output and this number could be very different for smelting companies depending on how energy efficient (or inefficient) their operations are.
Businesses in the agriculture, fisheries and forestry industries will initially be exempt from fuel cost increases. Heavy transport is being excluded for two years. The package will seek to close Australia's dirtiest power stations by 2020;
Our view - Not likely to impact Indian companies:
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