Aluminium Smelting

Summary of submissions

  • Rio Tinto Alcan did not raise any significant concerns associated with the aluminium smelting activity definition in its written submission.
  • Rio Tinto Alcan did raise issues associated with the data rules, which were addressed in previous briefing notes [10-B-00387 and 10-B-00551].

Summary of analysis

Matter Analysis
The requirement to define each activity by reference to a physical, chemical or biological transformation of inputs into outputs. The proposed activity definition is consistent with this matter.  The activity description is expressed as a physical and chemical transformation of inputs into outputs.
The undesirability of activities being defined by reference to the technology employed, the fuel used, the age of the plant, or the quality of the types of feedstock used when the activity is carried out. The proposed activity definition does not reference technology, fuel used, age of plant, or the quality of the feedstock.
The desirability of defining activities:
  • consistently and equitably across industries.
  • in a way that takes into account the impact that definitions may have on business investment, geographical location, and the structure of activities.
  • in a way that takes into account the potential for intermediate inputs produced when the activity is carried out to be substituted for bought-in inputs.
The proposed activity definition is consistent with this matter.
The desirability of there being no overlap between activity definitions. The proposed activity definition does not overlap with other activities.
Any other matters the Minister considers relevant, including activity definitions proposed to be used in Australia. The activity description, product, inclusions and exclusions very closely reflect the activity definition that has been produced for Aluminium Smelting in Australia.
The terminology of the standard exclusions in section 161E of the Act and on page 21 of the consultation document is slightly different from the terminology proposed in Annex 1.  This terminology should be aligned.

Recommendation

We recommend that the proposed activity definition for aluminium smelting should remain substantively unchanged.

Last updated: 10 May 2010