none

‘Crunch time’ for Australian aluminium industry

02-06-2014
by 
in 

The Australian Aluminium Council has called on federal politicians to act this month to remove “two punitive imposts” on the aluminium industry.

“Federal Parliament will make two crucial decisions impacting Australia’s ability to compete with the rest of the world — will the carbon tax be quickly repealed, and will the burden of renewable energy subsidies be lifted?” said Miles Prosser, Executive Director of the Australian Aluminium Council.

Mr Prosser said the Australian aluminium industry has been transforming its business in the face of unprecedented market challenges. 

But the industry continues to be weighed down by punitive and unnecessary imposts as it fights to compete on the world stage.

“Now is the time for Parliamentarians to release the cost burden and allow Australia’s aluminium industry to compete,” Mr Prosser said. 

Globally, Australia is the second largest producer of alumina and the sixth for aluminium, but faces higher climate policy costs than any other country. 

This $8 billion export industry is facing its toughest conditions ever due to the historically low aluminium price and persistently strong Australian dollar.

“Australia’s refineries and smelters are fighting for survival, said Mr Prosser. “The Senate must quickly allow the repeal of the carbon tax or explain why their posturing and delay is worth risking decades of investment and thousands of jobs.

“Any delay after 1 July cuts into our competitiveness by millions of dollars a month. At that rate, it threatens the very future of Australia’s manufacturing industry. The Senate should pass the repeal now and stop playing politics with jobs and businesses.”

Mr Prosser said the Renewable Energy Target (RET) also had a significant impact on the aluminium industry – a high electricity consumer.

Electricity is used to transform Australia’s bauxite reserves into aluminium for cars, planes, computers and infrastructure.

“RET costs are an even greater drag on our industry than the carbon tax, Mr Prosser said. 

“The Government’s current review of the RET provides the opportunity to remove the subsidy all electricity users currently pay to renewable generators. That would reduce costs not just for aluminium smelting but for all Australians.

“We have reached the crisis point. Parliament must move quickly to lift the cost burdens from what’s left of Australian manufacturing.”

Related news & editorials

  1. 17.09.2020
    17.09.2020
    by      In
    A new report from Australia’s national science agency, CSIRO, has revealed the opportunities for key industries to leverage science and technology and help restore economic growth and resilience.
    The COVID-19: Recovery and resilience report highlights the trends and national advantages COVID-19... Read More
  2. 17.09.2020
    17.09.2020
    by      In
    As with many industries, compressed air can be a significant cost if not conserved.
    In many areas of production more than 20% of compressed air energy can be attributed to waste.
    Key Account Manager for SMC Corporation Australia New Zealand  - Dairy Industry, Paul Grantham describes what “... Read More
  3. 17.09.2020
    17.09.2020
    by      In
    A high percentage of health care workers are at risk of contracting airborne diseases such as COVID-19 due to personal protective equipment facemasks not fitting correctly, according to a review of literature carried out by researchers from The University of Western Australia, Perth Children’s... Read More
  4. 17.09.2020
    17.09.2020
    by      In
    Nine out of 10 Australians believe Australia should produce more products locally as a result of the COVID-19 pandemic, according to a consumer research by Roy Morgan.
    The study found 89 per cent of Australians believe manufacturing should be re-shored. Reliance on other countries topped the list... Read More