carbon tax

Rio Tinto's (ASX:RIO) boss warned the government not to experiment with the economy after $100 billion worth of shares were lost last week.

Chief executive Tom Albanese said carbon tax would add costs to the mining industry and that tax should be applied gradually to test for impact.

"Our position is that in terms of coming up with a price for carbon ... it should be gradual, it should be tested over time to make sure it's not having a negative effect," he said.

Fortescue Metals (ASX:FMG) outgoing chief Andrew Forrest has vented his ire over carbon tax with a warning that the company will launch a High Court challenge if the government green lights the proposal in its current incarnation.

Forrest said that the mining tax was "economic vandalism" and unconstitutional. He said that the legislation favoured the three bigwig miners who can best afford to pay the tax: Rio Tinto, Xstrata and BHP Billiton.

While contention rages on about an emissions trading scheme, heavyweight miner Rio Tinto (ASX:RIO) has spoken about its carbon record. Rio Tinto's chief maintains that coal and iron ore outputs are too vital to the economy to be offloaded because of carbon tax.

Sam Walsh, Rio's iron ore division chief executive, also cited the company's records in reducing its carbon footprint. Current economic growth was due to demand from China and India and not so much to a "boom," said Walsh.

BHP Billiton (ASX:BHP) has called for a slow down on the government's carbon pricing and climate change policy, and said that reform should focus initially on the electricity sector.

Jac Nasser, BHP chairman, cautioned the nation against beliefs that plans for carbon tax would have global impact. Nasser said that there would be a major need for broad sources of energy in response to potential energy demand in developing countries.

Westpac (ASX:WBC) rejected claims of opposing carbon pricing and maintains that they support the government's plan to a greener economy by placing a price on pollution. Chief executive Gail Kelly stated that "Our position with regard to carbon has been consistent and been a long-held position."