Has the carbon tax slowed mining? > Check the facts
Who: “Many mining companies say they will no longer do business in Australia once this tax and the subsequent emissions trading scheme are introduced.” Senator Alan Eggleston.
The Claim: The carbon price will destroy the mining industry in Australia. This claim has been made by many people in the mining industry and on the coalition side of politics.
The Facts: The carbon price has been in for eleven months and so far there has been no slowdown in mining industry activity. Mining industry investment has increased 85 per cent since the announcement of the carbon price to new record highs. Australia has 87 new resource projects worth a record $268 billion that resource companies have committed to.
Discussion of evidence: The best indicator of the expected future health of an industry is its investment in increasing future production. An industry that expects to continue growing will spend on expanding its output to meet future demand. An industry worried about future growth will not spend money to expand its output.
The mining industry is spending record amounts on investment. The coal industry alone has 21 projects worth around $17 billion. By 2016-17 it is predicted that coal exports would have increased since the announcement of the carbon price by 72 per cent.
These are not signs of an industry that is concerned about its future.