Carbon tax will increase global emissions: Rusal

Aluminium giant Rusal has called for the government to suspend the introduction of the carbon tax, saying it will drive up global carbon emissions as aluminum smelting migrates to China, according to The Australian.

Rusal Australia chairman John Hannagan told the paper the tax would cost Queensland Alumina Ltd around $20 million in the first year after its introduction. Rusal holds a 20 per cent stake in Queensland Alumina.

“The Australian alumina industry has emissions that are little more than half the world’s emissions on refining,” Mr Hannagan said. “Future investment will go offshore.”  

The federal government’s Jobs and Competitiveness Program is expected to spend over $3.5 billion of assistance to the alumina and aluminium sectors over the next three years, a spokesman for Mr Combet told The Australian.