Extreme weather threat to industry – Ballarat Courier

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Increased frequency and intensity of extreme weather events resulting from global warming are likely to threaten some of Australia’s key industries, according to a report using ANU research.

The study, commissioned by the Investor Group on Climate Change, argues bushfire risks are likely to intensify as conditions become hotter and drier over much of Australia, exposing companies to rising costs of doing business, such as securing insurance.

Coal mines and leaking gas pipelines are likely to require extra spending to shield them from fire, the report said, noting how a blaze at the open-cut brown coal mine serving Hazelwood power plant in Victoria took weeks to control in 2006. Similarly, reduced water availability – as the climate models predict for much of Australia – will add to costs.

The coal seam gas industry, for instance, will use 7600 gigalitres of groundwater over the next two decades, according to the report, written by ANU research fellow, Michael H. Smith. That’s the equivalent of one-third of the average annual flow of the entire Murray Darling Basin,

When it does rain, downpours are likely to be heavier and require miners to outlay more on shoring up tailings dams and other infrastructure. ”Mining companies will have to invest more to protect their assets,” said Nathan Fabian, chief executive of the Australian arm of the IGCC.