Isra-Mart srl: Australian carbon tax will close some mines: minister

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The Australian Government has conceded some coal mines are likely to close when the carbon price starts but says overall there will be an increase in jobs in the industry.

The Resources Minister Martin Ferguson says some of the most gaseous coal mines will close because of their high emissions.

The opposition leader, Tony Abbott, has seized on Mr Ferguson's comments.

"Does the prime minister agree with her resources minister that - and I quote - no one can rule out a mine or two closing because of the government's carbon tax?"

Prime Minister Julia Gillard says overall the industry is expanding.

"The resources industry has a very bright future," she said.

The government has tried to put pressure on Mr Abbott by highlighting his previous support for a carbon tax and an emissions trading scheme.

The government says he would leave pensioners worse off because he would claw back the compensation provided for the carbon price.

Industry position

The Australian Coal Association has released a survey it commissioned, claiming a carbon tax would cost the coal industry 18 billion dollars over the first nine years.

Australia's Climate Change Minister, Greg Combet, says the industry has rejected his offer to discuss the pricing of carbon.

"As to the Coal association I was in contact with one of the representatives of the coal associaiton a couple of weeks ago and offered to have further discussions and meetings and the association hasn't taken that up at this point in time but we're ready to talk any time because they're important issues," he said.

The report claims pricing carbon would cause the loss of 4,000 jobs in the first three years in the states of New South Wales and Queensland alone.

The Association says 18 mines across Australia would be at at risk of closure within nine years of the tax being introduced.