By JOHN VAN KLAVEREN
THE ROLE of the carbon tax on the closure of Alcoa’s Point Henry smelter has come under question after partner Alumina revealed energy costs had increased since the tax’s repeal.
In its latest financial report, Alumina said the loss of carbon tax credits was partly reponsible for its increased energy costs.
Alumina partnered Alcoa in the Point Henry smelter and rolling mill, which closed in August due to high running costs.
The carbon tax was repealed in July.
The revelation demonstrated the high level of compensation granted to major industries to offset the impact of the tax on carbon dioxide emissions.
Aluminium smelters are extremely power-hungry, with Point Henry using its own power station at Anglesea as well as supplies from the electricity grid.
The Federal Government gave energy-intensive, trade-exposed industries compensation worth 94.5 per cent of their carbon tax liability.
Alumina’s financial report also revealed that costs for demolition and remediation of the Point Henry site were likely to extend to the end of 2018.
The report said the Anglesea coal mine and power station were operating as a standalone facility after the Point Henry closure.
The Anglesea power station was selling electricity into the National Electricity Market after successfully being registered as a scheduled market generator in August, the report said.
Alcoa is seeking a buyer for the Anglesea facility, which employs around 80 staff.
