The company, which owns the Wongawilli and NRE No 1 mines in the New South Wales Illawarra – has generated thousands of tonnes of greenhouse gases.
Gujarat NRE Coking Coal Ltd had incurred a shortfall charge of $7,020,520 (equivalent to 234, 800 carbon units). Gujarat NRE Wonga Pty Ltd had incurred a shortfall charge of $1,356,862 (equivalent to 45,380 carbon units), a spokeswoman for the Clean Energy Regulator told ILN.
“By midnight on Monday June 17, the majority of liable entities were required to report and acquit their interim liability under the carbon pricing mechanism, representing an estimated 75% of their expected emissions for the current reporting year,” she said.
“Entities who failed to surrender enough eligible emissions units to satisfy their progressive liability by midnight on June 17 have incurred a shortfall charge, which is 130% of the fixed charge per unit in shortfall.
“Gujarat NRE Coking Coal Ltd and Gujarat NRE Wonga Pty Ltd did not surrender units to acquit their interim liability and have incurred a shortfall charge.”
A Gujarat spokeswoman would not comment on the issue to ILN.
Liable entities who did not surrender enough units to satisfy their interim liability by June 17 were required to pay a unit shortfall charge within five business days, the Clean Energy Regulator spokeswoman said.
“Liable entities who incurred a shortfall charge were advised that a further 20% per annum interest starts accruing if payment was not received by June 24,” she said.
“The Clean Energy Regulator is working with entities with unpaid shortfall charges to determine how they will pay.”
Gujarat, Whitehaven Coal and Yancoal are among the biggest casualties of the carbon tax, according to research by Patersons stockbrokers.
Gujarat would have been the worst hit producer under the carbon tax using 2011 data.
An estimated 760 kilotonnes of CO2, creating a liability of $17.5 million, would have taken 9.4% of the company’s total revenue for 2011 of $187 million.
Whitehaven would have paid 1.59% and Yancoal would pay 1.5% of their 2011 revenues.
“The impact may not appear material for the majority of ASX-listed companies, but for companies operating in a high-cost environment the loss of revenue will not be welcome,” Patersons said.
“The carbon tax will also increase the regulatory burden. Some of these companies are already dealing with falling commodity prices, the Mineral Resource Rent Tax and the unquantified indirect costs of the carbon tax such as electricity and the implementation and policing of the policy.”
Australia’s carbon pricing mechanism works by setting a fixed price for carbon units for three years (in real terms): 2012/13 $23 (Year 1), 2013/14 $24.15 (Year 2) 2014/15 $25.40 (Year 3).
From July 1, 2015, the carbon price will be flexible, and set by the market with reference to the demand for and supply of carbon units.
Most carbon units will be in auctioned by the clean energy regulator.
According to the Gujarat website, there is scope to develop extensive high-quality methane gas resources (estimated in excess of 50 years), existing within the Wongawilli seam, which contains the largest field of gas in the region.
The presence of gas up to 10m3/t with acceptable CO2 ratios in the Bulli and Balgownie seams may also be exploited for gas sales or power generation.
Government incentives and grants are available in projects, which reduce greenhouse gas (methane) emissions for which the Balgownie project may qualify, according to the company.
