Certainty for Upper Spencer Gulf under carbon scheme
News Release
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Premier Mike RannMinister for Economic Development |
Tuesday, 12 July 2011
Premier Mike Rann says the industrial future of the Upper Spencer Gulf looks bright, now that there is certainty under the Commonwealth carbon pricing scheme.
Mr Rann has been in Whyalla, Port Augusta and Port Pirie today, for talks with local industry and councils, following the weekend announcement regarding carbon pricing.
“The weekend announcement by Prime Minister Julia Gillard of assistance for highly emissions-intensive trade-exposed industries is good news, particularly for Whyalla,” Mr Rann said.
“This morning, I met with Whyalla Mayor Jim Pollock and toured the OneSteel plant, where a relining of the blast furnace is just being completed,” Mr Rann said.
“Under the measures announced on the weekend, highly emissions-intensive trade-exposed industries, such as steel manufacturing, will be given assistance based on 94.5 per cent of industry average costs.
“I’m advised that OneSteel is eligible for the high rate of assistance, and the Federal Government is also providing $300 million to encourage investment and innovation in the steel manufacturing industry.
“I also went to Port Augusta, where I met with Mayor Joy Baluch to discuss a range of local issues, including the future of the Alinta-owned power stations.
“Alinta has made it clear that the Northern Power Station will not close, and neither will the Leigh Creek coal mine, which is expected to remain viable and productive until 2030.
“But Alinta has said it intends closing the older and dirtier Playford coal-fired power station and to replace it with gas-fired plant. They’ll be holding talks with the Commonwealth about that, and I’ll be having discussions with the Chief Executive of Alinta on Friday.
“In Port Pirie, I had a good meeting with Local MP Geoff Brock, and Nyrstar management, for discussions about the future of the smelter operations.
“There was a real feeling of confidence from Nyrstar, including their proposal to modernise their lead, zinc and silver smelting operations to reduce lead and carbon emissions.
“The situation with Nyrstar is quite complex, because of their integrated operations, and interdependence with their Hobart plant, and I’m hoping to meet with the global head of Nyrstar in Europe in September.
“I will be talking with Ministers Martin Ferguson and Greg Combet later this week, and will be providing feedback from the industries in the Upper Spencer Gulf to the carbon pricing scheme.
“Following my meetings today, it’s clear that industry is confident about the future.
“The Upper Spencer Gulf Cities will also greatly benefit from the increased mining activity in South Australia, which has seen the number of mines increase from four to 17 in the past nine years, with another 30 in various stages of development.
“The cities and citizens of the Upper Spencer Gulf have a great future because over many years, they have demonstrated a great resilience and adaptability.”
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- Page Last Modified: November 15, 2011