Alcoa: Australia Carbon Scheme Recognizes Indus Challenges

SYDNEY -(Dow Jones)- U.S.-based aluminum producer Alcoa (AA) Monday said Australia's proposed carbon emissions cut and trading scheme recognized challenges to industries competing internationally.



But Alcoa also warned that the viability of its Australian operations would be at stake if preferential treatment under the scheme is rolled back too quickly.



"If our Australian operations incur significant additional costs - and our competitors do not - it will render Australian industry unviable," Alcoa said in a statement.



Alcoa together with Alumina Ltd. (AWC.AU) is a joint venture partner in Alcoa Worldwide Alumina and Chemicals, or AWAC that operates a global network of bauxite mines, alumina refineries and aluminum smelters.



Under the carbon trading plan, big polluters - classified as those producing more than 2,000 metric tons of carbon emissions per A$1 million of revenue - will initially pay for only 10% of their emissions while the government will pay for the remaining 90%.



They include aluminum smelters, cement clinker production, lime production and integrated iron and steel-making.



Firms producing 1,000-1,999 tons of carbon dioxide per million in revenue, such as alumina and petroleum refiners, and liquefied natural gas producers, would be liable for 40% of emissions.



-By Elisabeth Behrmann, Dow Jones Newswires;