Rio Tinto says Labor plan will bolster industry’s climate drive

“These proposed reforms have been carefully calibrated to deliver the policy certainty and support Australian industry needs through decarbonisation,” Climate Change and Energy Minister Chris Bowen said on Tuesday.

“We’ve been extremely encouraged by the level of engagement in the process to date, and look forward to continued constructive engagement as we finalise the design of these critical reforms for Australia’s net-zero pathway.”

‘We want to see an approach that puts Australia on a pathway to that 2030 target, but we need to keep our trade-exposed export industries strong and competitive.’

Minerals Council of Australia chief executive Tania Constable

The backing of Rio Tinto, one of the country’s largest resources giants, marks a significant endorsement of Labor’s climate ambitions. Industry representatives across the broader mining sector on Tuesday welcomed the government’s inclusion of an initial $75-a-tonne cap on the price of Australian carbon credits, but have voiced deep concerns that the overall cost of compliance may threaten their international competitiveness.

Minerals Council of Australia chief executive Tania Constable said miners represented roughly half of the facilities covered by the safeguard policy. “We want to see an approach that puts Australia on a pathway to that 2030 target, but we need to keep our trade-exposed export industries strong and competitive,” she said.

Rio Tinto has a target to halve its direct carbon footprint by 2030 and reach “net-zero” emissions – removing as much carbon dioxide from the atmosphere as it emits – by 2050. While the company has committed to spending $US1.5 billion ($2.1 billion) on wind and solar energy across its flagship iron ore mines in WA’s Pilbara region to reduce the use of gas, it faces a more challenging task to decarbonise its carbon-intensive alumina and aluminium businesses spanning Queensland, NSW and Tasmania, which are among the nation’s biggest energy users.

Parker on Tuesday said Rio Tinto was assessing changes to processes at its Yarwun alumina refinery to reduce emissions by trialling the use of hydrogen instead of gas.

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