Bandanna Energy Ltd (ASX:BND) expects a significant competitive advantage over its New South Wales competitors in respect to the carbon tax payable on fugitive emissions from open-cut black coalmines.
However, the coal producer believes the tax makes Australia’s coal industry as a whole less competitive in international terms.
Bandanna says fugitive emissions of methane from its coal projects is expected to be the largest single source of greenhouse gas emissions.
The company has three projects planned for development as open cut operations, Dingo West, South Galilee and Arcturus.
In the first six months of the 2011 financial year, Bandanna Energy reported a net loss of $2.4 million.
