Carbon Tax Effect - Aussie Stock Forums

Results 1 to 3 of 3
  1. #1

    Default Carbon Tax Effect

    I am trying to balance my precious metals portfolio and wondering how this carbon tax coming in will effect these shares, depending on where they earn their money. For example:

    MML (Earns 100% of its revenue in the Philippines)
    TRY (Earns 92% of its revenue in South America)

    as opposed to:

    PRU (Earns 98% of its revenue in Australia)
    SLR (Earns 100% of its revenue in Australia)

    Does anybody understand the effect the tax will have on the Australian companies? Will the companies earning their revenue predominately overseas have a destinct advantage?
    The simple things in life are free!

  2. #2

    Default Re: Carbon Tax Effect

    Please feel free to correct my calculation:

    1 litre of diesel produces ~2.88 kg of CO2
    347 litres of diesel produces 1 tonne of CO2
    1 tonne of CO2 costs $23 in tax
    so the price of diesel will increase 6.6 cents per litre.

    Diesel is obviously a huge part of any mining cost.

    Interestingly FMG are far more concerned about the MRRT than the Carbon Tax

    Last edited by Surly; 22nd-June-2012 at 03:13 PM. Reason: extra info

  3. #3

    Default Re: Carbon Tax Effect

    Quote Originally Posted by Surly View Post
    Please feel free to correct my calculation
    You're close enough to not worry about any minor variations.

    The only real exception will be if the diesel has to be road freighted huge distances to get to the mine. Eg you burn three quarters of the fuel at the mine, and the other quarter trucking it all the way there in the first place. I don't know if there's any gold mines actually doing that, but it's not impossible.

    Also, consider that natural gas, coal and things produced from them (most notably electricity) will also rise in price. Depending on the nature of the operation, some mines use lots of electricity either from the public grid or from their own power station on site (usually fuelled by diesel or gas although in the past a few mining companies have built their own coal or hydro power schemes).

Similar Threads

  1. Labor's carbon tax lie
    By drsmith in forum General Chat
    Replies: 2418
    Last Post: 29th-July-2014, 11:55 PM
  2. What does the Carbon Tax mean for me?
    By LostMyShirt in forum General Chat
    Replies: 200
    Last Post: 13th-June-2014, 12:40 AM
  3. Abbott's carbon tax confusion
    By nioka in forum General Chat
    Replies: 27
    Last Post: 29th-July-2011, 01:36 AM
  4. Religious leaders back carbon tax .... No.
    By the phantom in forum General Chat
    Replies: 8
    Last Post: 3rd-June-2011, 07:49 PM
  5. Softening the carbon tax
    By tothemax6 in forum General Investment and Economics
    Replies: 51
    Last Post: 5th-March-2011, 06:44 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums