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PERTH (miningweekly.com) – The Australian Aluminium Council has called on federal government to resolve uncertainty around the Renewable Energy Target (RET).
The call comes after federal Environment Minister Greg Hunt reportedly said that an agreement was “very close” with the clean energy sector around the RET.
The RET was designed to reduce greenhouse-gas emissions in the electricity sector, encourage the additional generation of renewable energy through financial incentives and to ensure that at least 20% of the country’s electricity supply came from renewable resources, by 2020.
The Australian Aluminium Council pointed out that an agreement on the RET could resolve the current impasse and provide a certain foundation for increased investment in renewable energy, as well as reduced costs for trade-exposed industries such as aluminium smelting.
“Both parties must resist the calls coming from some quarters to hold out for their ‘perfect outcome’ - if a deal is not negotiated and closed before Easter, the situation will worsen significantly for all industries. The outcome of the deal on offer is preferable to the serious risks imposed by a continued stalemate,” the council said in a statement this week.
“The Australian Aluminium Council believes a balanced approach to resolving the current impasse is possible and urges the Australian Labor Party to consider the deal put forward by the government as quickly as possible. The future of Australia's vital industries is at stake.”
The council’s call comes in the wake of major Alcoa announcing that it would cut about 500 000 t of smelting capacity and 2.8-million refining capacity from its global portfolio over the next 12 months.
While the Portland smelter would be safe from divestment or closure, Alcoa World Alumina and Chemicals’ other operations, which include the Wagerup, Kwinana and Pinjarra alumina refineries, in Western Australia, could well be on the chopping block.