News Wrap

IN THIS morning’s wrap: mining is the only driver of growth; China goes softly on carbon price; coal sector to consolidate further; and Rinehart to battle Rio Tinto over iron ore royalties.
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Billionaire and Hancock Coal chairman Gina Rinehart.

Lou Caruana

Mining is the only driver of growth

The massive business investment pipeline created by the mining boom is the only driving force behind the national economy's current growth, increasing the chances of an interest rate cut next month, The Australian reports.

The Deloitte Access Economic Business Outlook, to be released today, shows Australia's damaging two-speed economy trend is worsening, with mining remaining powerful while some sectors of the economy are hit by the high Australian dollar.

China goes softly on carbon price

Energy companies won’t be directly taxed under China’s carbon trading scheme, which has been delayed, undercutting claims by the Gillard government that the world’s second-largest economy is taking quick, tough action on climate change, the AFR reports.

China had been planning to launch a national emissions trading scheme in 2015 after pilot schemes across five cities and two provinces. But the project’s top official said energy and power companies wouldn’t be directly taxed and the national scheme would be pushed back until at least 2016.

Coal sector to consolidate further

Foster Stockbroking analyst Craig Brown has predicted further consolidation in the coal sector despite dour market conditions that have plagued coal explorers and developers in recent weeks, the AFR reports.

Falling coal prices and uncertain global economic conditions have affected the share price of listed coal explorers including Carabella Resources and Cockatoo Coal in recent weeks.

Rinehart to battle Rio Tinto over iron ore royalties

Rio Tinto is fighting a claim from Australia's richest women, mining billionaires Gina Rinehart and Angela Bennett, that it should pay them royalties on every tonne of iron ore produced at its Channar and Eastern Ranges mines in the Pilbara, the SMH reports.

More than 50 years after Lang Hancock and his business partner Peter Wright negotiated the first agreements to develop the Pilbara deposits, their descendants have put aside their own disagreements to sue Rio subsidiary Hamersley Iron over the terms of a 1970 royalties agreement.

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