Mining giant Rio Tinto Ltd says the federal governments renewable energy target (RET) scheme will cost the company between $500 and $800 million over the first 10 years of the program, partially due to government compensation being tied to Labor's delayed emissions trading scheme (ETS), according to Fairfax newspapers.
According to the report, in a submission to a Senate committee, Rio said the government's plan to give a 90 per cent exemption from RET costs to trade-exposed sectors would provide only a 55 per cent exemption with the delay of the ETS.
The Senate is set to vote on amendments to the target soon, which aims to see 20 per cent of all energy come from renewable sources before 2020.
According to Fairfax, Rio's submission said that the costs of the plan will affect the miner's spending and employment at it's Hunter Valley, Gladstone and Tamar Valley smelters.
Rio's concerns echo those of other aluminium producers that say RET amendments link assistance for big power users to the ETS.
The miner's shares rose 1.76 per cent to $67.94 at 1034 AEST, against a 1.36 per cent improvement in the benchmark index.
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