Implications of the carbon price and developing a carbon strategy

19 Dec 2012Archived News Climate Change Matters

The Clean Energy Act will affect the bottom line of all mining and mineral processing operations in Australia. The extent to which a company is affected is a function of the configuration of the individual operation (ie energy sources and energy consumption) but all operations face cost increases as a result.

Development of an appropriate carbon strategy will assist companies through identification, quantification and management of this key business risk. It is recommended that Australia’s mining and mineral processing companies are fully aware of the implications of the Clean Energy Act on their operations and appropriate management strategies are put in place. Those companies that address the risks early and manage them effectively should find themselves with a competitive advantage.
 

The introduction of the Clean Energy Act can be seen by the Australian mining and minerals processing industry as a business risk. The inclusion of a price on greenhouse gas (GHG) emissions will impact the bottom line for all operations in the industry, with the exception of those that receive a free permit allocation in excess of their requirements.

The attached paper, presented at the International Mine Management Conference 2012, outlines detail on how the Clean Energy Act operates and, importantly, how Australian mining and mineral processing operations will be affected. As the carbon price represents a business risk, it must be managed strategically, consistent with other business risks. Guidelines on how to define and implement a carbon strategy are considered in the Paper under the following areas:

  • Cost and profit impacts
  • Compliance issues
  • Business system updates
  • Working with your supply chain
  • Risk management

For advice and assistance please contact the Marc Allan or Peter Holt.


 

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Dr Peter Holt

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