The magnetite iron ore industry says the federal government’s carbon pricing scheme does not provide it with appropriate assistance, and more compensation is required to ensure jobs growth is maintained across the country.
The Magnetite Network (MagNet), representing 12 magnetite miners across Australia, said a report released by Deloitte Access Economics clearly modelled the economic benefits of the emerging industry; estimating magnetite developments could add $4.5 billion to Australia’s gross domestic product and create more than 4,400 jobs.
MagNet chairman Bill MacKenzie said despite this production, the proposed carbon pricing mechanism did not provide the industry with appropriate assistance.
“In terms of global carbon emissions, the use of magnetite concentrates in high-quality steel comes at a much lower cost to the environment than the use of conventional hematite iron ore,” Mr MacKenzie said.
“We need the federal government to recognise this key environmental benefit by setting a more realistic calculation of baseline emissions that represents the wider emerging magnetite industry – not based on a very small and unrepresentative proportion of producers.
“The government appears oblivious to the perverse outcome of penalising a lower global emissions industry.
“We have sought continually to work constructively to develop a solution to this challenge.”
Mr MacKenzie said the network had proposed the creation of an “activity definition” for ultrafine magnetite, which would allow a new baseline level of emissions to be determined that is more representative of the entire industry.
“All we ask is that the government allows the emerging magnetite industry to grow and create more Australian jobs until a mechanism recognising its global carbon savings is in place,” he said.