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New Australian Prime Minister Kevin Rudd plans to discard the country's carbon tax and introduce...

New Australian Prime Minister Kevin Rudd plans to discard the country's carbon tax and introduce a less costly floating price emissions-trading system by July 1, 2014, a year earlier than planned. The scrapping of the tax, which was a flagship policy of ousted PM Julia Gillard, is expected to lower government revenues by several billion dollars, so it will have to cut costs to compensate. Companies that could be affected include Peabody Energy (BTU), BHP (BHP), Rio Tinto (RIO) and Glencore (GLCNF.PK).
Comments (23)
  • Perhaps the Gillard government over-reached?
    14 Jul 2013, 09:26 AM Reply Like
  • Hardly. CO2 parts per million now exceed the 400 mark. And I consider anyone a member of the Flat Earth Society who disputes the scientific consensus regarding global warming.


    Human beings are weak. If the truth is inconvenient, they stick their head in the sand.
    14 Jul 2013, 11:06 AM Reply Like
  • Here's a nice little article on global warming.

    14 Jul 2013, 01:29 PM Reply Like
  • Indeed, maudie


    The eco-left blew their cover with Warming-Gate scandal a couple of years ago.


    If the science doesn't fit your politics, attack personally the individuals who question it. Pretty standard stuff.
    14 Jul 2013, 03:09 PM Reply Like
  • flat earth society?, didn't they disappear a few centuries ago? What does that make you?
    A shill and a propagandist for taxes to fix the problem? LOL.
    400 ppm and so? what are you trying to say?
    14 Jul 2013, 06:40 PM Reply Like
    14 Jul 2013, 08:16 PM Reply Like
  • the false religion of global warming

    14 Jul 2013, 08:18 PM Reply Like
  • LOL now its cooling - was that long ago they were warning about an ice age

    14 Jul 2013, 08:21 PM Reply Like
  • you know when they dont have facts or a basis, the name calling starts promptly
    14 Jul 2013, 08:21 PM Reply Like
  • You my friend are a flat doubt about it. If a leftist supports it, you know its contrived, false, and harmful to the individual.
    14 Jul 2013, 09:46 PM Reply Like
  • Ya think? Rudd is no better implementing another tax on their own industry.
    14 Jul 2013, 11:17 AM Reply Like
  • It would be nice to hear from T1243. He is an Australian specialist on this matter.
    14 Jul 2013, 12:36 PM Reply Like
  • Vorgriff, Thank you for the prompt.


    The original fixed Carbon Tax was what the Labour party needed to get the Greens party support to form Government in 2010. A new election should be called any day now. Switching to a floating carbon price takes some wind out of the Oppositions sails. A complete political play.


    But back to what it means for the mining companies like Peabody? It should bring the direct cost from $24 down to ~$10 per tonne of CO2. While there has been some positive articles, it has not moved the share price of the likes of RIO, BHP significantly.


    Profitability for Australian coal mining operations are still at the mercy of revenues. Profitability still dominated by coal price and the exchange rate. Currently 0.91 cents, down from over parity, but still high historically. Once we see the AUD look like staying in the ~0.80s, we will see companies like Peabody start generating free cash flow again. But until then, don't look for any dividend contributions from Australian operations. I am confident it will happen, and BTU will reap benefits from their MCC acquisition. But the floor is awash with blood.


    I understand Peabody are announcing another round of retrenchments on the 23rd July.
    15 Jul 2013, 12:52 PM Reply Like
  • Great contribution T (as expected). Very much appreciated, thank you !


    The floor is awash with blood, you are right. Hope BTU gets out of the red this or next quarter.
    15 Jul 2013, 11:01 PM Reply Like
  • I suspect most of the global warming business is about politics and money. I recall about forty years ago, "expert scientists" were proclaiming the beginning of a new "mini Ice Age." It was on the cover of Time magazine. Guess they were mistaken, though I can't remember many apologies afterwards. That's kind of how the media works it.


    For those with money and time, global warming is a top choice. It's less of a top choice for the less well-off, since it entails their standard of living taking a dive.


    As an engineer, access to clean drinking water is one of my top choices for a global problem demanding a solution. About 780 million people lack access to clean water. Over 3.4 million a year die from illness due to unclean water. The deaths are all preventable. Very line-of-sight.


    Developed nations use potable water in the toilets.


    Here's a couple of bookend articles about global warming:


    14 Jul 2013, 12:59 PM Reply Like
  • dont forget $200 million al jazeera al the father of global warming lies gore

    14 Jul 2013, 08:25 PM Reply Like
  • The Environmentalist called for an Ice Age in the 70's, global warming in the 90's and 2000's. Now its Climate Change and every weather condition is pointed to as proof. All lies from the hate hydrocarbon crowd.


    Actually, the Earth has been cooling. The left has been caught in lie after lie. They demand consensus and uniformity while seeking to destroy independence and the individual. Their God is control and BIG government.
    14 Jul 2013, 09:46 PM Reply Like
  • Kill the goose that lays the golden eggs. Not smart.
    14 Jul 2013, 02:25 PM Reply Like
  • Ray Merola #1712 above has it right.
    Period, some people will beleive/fall for almost
    anything. Look what has happen in our USA.
    Politically Correct anybody is just great. HA
    14 Jul 2013, 06:42 PM Reply Like
  • Replace one tax with another; Brillant!
    14 Jul 2013, 07:17 PM Reply Like
  • The urgers of Climate Change doom remind me of the zealot Christians who thought it their duty to Christianise Africa and Asia. Like climate change it was based on faith.
    15 Jul 2013, 01:51 AM Reply Like
  • Rudd has basically implemented a lower tax instead of the higher fixed cost carbon tax which made Julia Gillard look stupid, of course being that an election is only a few months away its probably just a coincidence.........NOT
    15 Jul 2013, 06:31 AM Reply Like
  • How about we start to focus on our children`s future instead of taxes, global warming, kissing mining-exec`s asses, etc.


    Just like in the capitalist system, the political system suffers from misplaced incentives. No long term view. Just short term fixes & power positioning.


    15 Jul 2013, 07:49 AM Reply Like
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