Carbon tax will hurt alumina refinery, company says

Queensland Alumina Limited (QAL) has warned the Federal Government's proposed carbon tax could affect the viability of its refinery in Gladstone in the state's central region.

QAL told its employees the tax will hurt the company's international competitiveness.

Project partner Rusal is expected to discuss the long-term future of its alumina refineries at a board meeting in Hong Kong today.

Federal Climate Change Minister Greg Combet says the carbon price is not the cause of pressures facing the aluminium industry, but the Government will provide very significant assistance to help support jobs.

Australian Aluminium Council (AAC) spokesman Miles Prosser says the concerns are justified because a carbon tax could impose substantial costs.

"We're looking for a policy process to ensure the costs being imposed in Australia are in line with what's being imposed elsewhere and that we're not going ahead of other countries by imposing a higher cost here," he said.

"This way we can maintain the competitiveness of the industry and look to perpetuate and grow an industry in Australia where we are global leaders.

"At this stage we're not expecting to have anything further for the Government.

"The Government is locked into negotiations with the independents and the Greens and we really need to see what the outcome of those discussions will be before we'll know what the impact is going to be."