Coal chief's fears on permits

Adelaide Advertiser
Monday 21/7/2008 Page: 61

Xstrata Coal chairman Peter Coates is concerned there will not be enough free permits to protect industry under the Rudd Government's emissions trading scheme. Mr Coates, who also sits on the boards of Santos and the Minerals Council, said the impact of that would be big for Xstrata and its shareholders. "I couldn't tell you the exact impact because we don't know what the carbon price will be," he told Sky News. "All I can say is there will be an impact." Mr Coates said the Government planned to allocate about 30 per cent of permits released to the emissions intensive trade exposed area. Of that, about 12 per cent will be given to farming with the balance for industry, he said.

"Our only concern is there will not be enough to properly protect industry because, at the end of the day, our overriding concern as Australians is we have to make sure there is no carbon leakage," he said. "We have to make sure we don't drive carbon intensive industry offshore. That is to no one's advantage." Mr Coates said the developed world was driving coal use. There was no slowdown in sight, with coal use expected to rise 70 per cent by 2030. "There is no solution to this issue without a clean coal solution. The Government knows that." he said.