Rio Tinto Proposes Amendments To Australian Carbon Scheme

Rio Tinto Ltd. (RTP) said Friday Australia's proposed carbon pollution reduction scheme, or CPRS, needs to be amended or it will hurt the nation's mining industry and cost jobs.

The miner has proposed four amendments that would need to be made to the scheme before it would support the passage of the legislation through parliament.

Rio said the current scheme disproportionately impacts the coal, aluminum and alumina industries and threatens the viability of low-emissions technology.

It called for amendments to the scheme to ensure fair treatment of the coal industry and support for low-emissions technology.

The miner also called for changes to the point where carbon liability is imposed to ensure the carbon price signal works effectively.

The annual permit reduction for trade exposed industries should also be removed until international competitors face similar carbon constraints, Rio said.

"Without these changes, the CPRS legislation will affect the international competitiveness of Australian resources companies and will have long-term consequences for Australian jobs and the Australian resources sector's ability to compete in global markets," Rio said in a statement.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; [e-mail]