Alumina refining in WA fares well under carbon tax

Alcoa Australia has won the highest level of assistance for its alumina refineries under the proposed carbon tax.

The company will qualify for free permits for up to 94.5 per cent of its CO2 emissions.

Under the legislation to be enacted, that level of assistance will remain until at least 70 per cent of its international competitors adopt a comparable carbon price.

Climate change chief for Alcoa, Tim McAuliffe, says the assistance is a win for the Australian industry and the global environment.

"Our alumina refineries are world class, globally competitive facilities, so it's really important that they qualify for that level of assistance so they can maintain that position on the international cost curve," he said.

"The alumina refineries in Western Australia are the most highly efficient in the world. They actually have a carbon footprint that's far better than most of their competitors.

"They're less than half the carbon intensity per tonne of alumina of, for example, than the refineries we compete with in China.

"So they're important not only for the jobs and the prosperity they bring to the state, but also from an environmental perspective, because they're the type of facilities that we need to make sure can continue in a carbon constrained world."

Mr McAuliffe says the next important step is for the Federal Government to enshrine the assistance in legislation.