The coal miner considered most vulnerable to Australia’s carbon tax plan has sought to halt an exodus of investors with a new strategy for minimizing its greenhouse gas emissions. According to The Sydney Morning Herald, ASX-listed Gujarat NRE has suffered a dramatic share price slide this year amid predictions the carbon tax could reduce profit margins from its New South Wales coal business by up to $16/metric ton. As Australia prepares to vote on carbon legislation, Gujarat has revealed hopes of keeping the carbon tax impost below $3/mt.
Gujarat operates two coking coal mines in the Illawarra region and is particularly vulnerable to the carbon tax because of the large volume of greenhouse gases released as byproducts during its mining processes. Fugitive methane emissions under the carbon plan and will be included in the company liability under the tax which takes effect from July 1, 2012.