Rio Tinto Limited
(ASX:RIO) says uncertainty surrounding the Federal Government's proposed carbon tax is holding back deals in the power industry.
According to The Australian, Rio believes that power users and suppliers are being prevented from negotiating supply contracts in "a meaningful way" until the government clarifies the carbon tax regulations.
In a submission to the Department of Climate Change and Energy Efficiency Rio's Australian managing director, David Peever, has reportedly stated that the carbon tax will, “expose Australian businesses to some of the highest carbon costs in the world, place them at a significant disadvantage and generate a level of uncertainty that will discourage ongoing investment in Australia”.
In the first half of 2011, Rio Tinto posted a record interim net profit of $7.5 billion.
