Roxby Downs will have a “comparative disadvantage” if the Emissions Trading Scheme (ETS) goes ahead, according to Federal Member for Grey Rowan Ramsey.
The ETS will be voted on in the House of Representatives this week.
According to Mr Ramsay, it could impact proposed Olympic Dam mine operations and cost jobs.
Mr Ramsey also said it would impact all industries and households with an estimated 30 to 40 per cent increase in electricity prices in the longer term.
“Its strongest impacts will be on energy intensive industries which export into markets where goods produced in a non-carbon taxed economy will have a market advantage,” he said. “Copper refining is one of those businesses.”
Mr Ramsey said the ETS is predicted to have a far greater effect on regional Australia than on cities.
He said the biggest threat to Roxby Downs is in the proposed extension of the mine’s refining process.
“BHP Billiton has already indicated that they intend to export a substantial amount of concentrate as part of the proposed expansion,” he said.
“For places like Roxby Downs, the ETS has the potential to impact on the smelter operation and it has the potential to cause problems.
Mr Ramsey said Australia’s exporting industry would not be able to compete on an even playing ground.
“It will lead to a lot of unemployment in Australia,” he said.
Mr Ramsey said underlying flaws in the proposals needed to be addressed.
“A focus on remedies that provide positive signals, such as investment in low emission electricity generation, bio-sequestration of carbon in agricultural soils…all offer positive answers that will not cost us thousands of jobs, particularly in regional communities,” he said.