Carbon tax “an absurdity” for SA mining

[miningmx.com] – IT would be “an absurdity” to introduce a carbon tax to South Africa as the country’s mining sector was struggling with rock bottom commodity prices and the prospect of more restructuring, said BDLive.

Citing Mike Teke, president of the Chamber of Mines, BDLive said 31% of South Africa’s gold mines and 40% of its platinum mines were loss-making. Teke was addressing the Chamber of Mines’ 135th annual general meeting in which he was re-elected president.

It would be an “absurdity” to introduce the tax next year because it would “prejudice the survival and competitiveness of the carbon-intensive mining industry,” said Teke.

The chamber argued that South Africa’s carbon emissions trajectory is below the commitment made by the government in Copenhagen in 2009.

The mining sector had already reduced energy consumption by 20% in the past seven years and there were other models to consider around carbon reduction, said BDLive.

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