Smelter closure warnings show need for ETS delay: OppnNyrstar...

Smelter closure warnings show need for ETS delay: Oppn

Nyrstar says it will have to close two of its smelters if the proposed ETS is not changed. (ABC News: Andrew Fisher)

The Federal Government says it will consider a warning from the world's largest zinc producer that it would be crippled by the proposed carbon emissions trading scheme.

Nyrstar has told the Government it will have to close two of its Hobart and Port Pirie smelters if the proposed scheme is not changed.

The company says the current scheme would cost it about $70 million dollars a year which is unsustainable.

Climate Change Minister Penny Wong has told the Senate that she will take on board the company's concerns.

"The Government has and will continue to consult in relation to the propositions which were put out in the green paper," she said.

"We will do so because we understand that it is the economically responsible approach to take. We will be very clear about the views of business as we proceed to design this scheme," she said.

The Federal Opposition says Nyrstar's warning rings alarm bells and the Government should put off introducing emissions trading.

Opposition industry spokesman, Eric Abetz says the Government is ignoring industry concerns.

"We now have Nyrstar and indeed other industry sectors are telling me this as well that it's going to cost jobs, not only hundreds but literally thousands unless this is got right," he said.

"And that is why we as an Opposition are saying slow down on an emissions trading scheme and get it right.

"Only one month ago, Nyrstar were not prepared to make such a statement but clearly after discussions with the Government they are now prepared to make such a statement.

"Their concerns, whilst being listened to are not being acted upon."

Liberal Senator David Johnston says he is concerned about job losses if the smelters close.

"Given the explicit nature of Nyrstar's statement, how can the Minister continue to deny that this ill-considered and hasty emissions trading scheme will cost thousands of Australian jobs," he said.