Australia has banned high-speed trading for a second time in a global mining catastrophe that has led to a rise in carbon emissions, with the Australian Capital Territory acting as a pilot project in the country’s biggest energy market.
Key points:New regulations were imposed on November 10 in the wake of a carbon trade collapseNew rules came into effect on November 15 in Australia’s largest coalminesChamonix Mountain Range in western Australia was the first to be impacted in the new regulationsThe move follows the closure of two large coalminers in New South Wales and Victoria that collapsed in 2015 and resulted in $3.8bn in losses for the mining sector and thousands of jobs lostA number of mining companies in the northern states of NSW and Victoria are facing closure, while Queensland has already cancelled operations at two of its largest coalmine sites.
The new regulations came into force on November 11, with a ban on high-volume trading for the next two months, a measure that will be phased in over three months.
In addition to the ban on trading, a new system to identify potential carbon sources has also been introduced.
“This is an important step forward in protecting the environment and minimising the negative impacts of this new trading system,” Queensland Environment Minister Tim Nicholls said.
The carbon trading system will not cover any future projects.
The move came as mining companies were forced to announce a huge loss as a result of the collapse of one of their biggest coalmine operations.
The collapse of the Cairns-based Goldfields Mine in the southern New South Wairarapa region of Western Australia, which closed in April, resulted in a $3bn loss for the Australian Coal Council and thousands more jobs lost.
The Australian Department of Mines and Energy (AEDEM) has already banned the use of high-intensity trading in Australia for the first time.
The ban will be introduced in Australia by the end of the year and will apply to all large and small mining operations, with any operations below a certain size required to follow the new trading rules.
It will also apply to any new coalmining projects or infrastructure projects, with an exception for mines with a capital cost of less than $1bn.
The government said the new rules would be effective in the immediate future and were designed to give miners time to recover from the loss they suffered.
“For the majority of the mine’s workers, it was the very first loss of their employment,” the department said.
“At least 2,000 miners lost their jobs or lost their livelihoods.”
The government is also investigating whether the new laws will allow the government to provide a financial lifeline to miners affected by the collapse.
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