Noranda Income Fund Unit NNDIF

carbon tax

[Scotch12]

When I read the article below it seems to imply it is not just the cost of the energy to operate the plants that is a problem for Nyrstar but also the carbon tax of certain european countries.  The latter seems unlikely to change and  if anything  get worse.

https://www.mining.com/zinc-price-hits-14-year-high-as-nyrstar-cuts-output/

“The cost burden of carbon emitted by the electricity sector which is passed on to industrial and domestic customers, means it is no longer economically feasible to operate the plants at full capacity,” Nyrstar said.

“Indirect cost compensation for energy-intensive producers to protect their competitiveness versus non-EU producers varies by European country and this puts Nyrstar’s Budel, Balen and Auby plants at a competitive disadvantage, compounding the impact of extreme energy prices.”

[ZincDink]

Tragedy, considering how the parent company worked so hard to get Nrystar afloat after causing the bankruptcy.

[galvanized]

EU carbon taxes (and also on top a carbon emmissions trading system) are part of the problem but that is not the main story...IMHO. As I understand it, one of the Nyrstar plants is in the netherlands, and the other two, I seem to remember are in France. In the Netherlands, they have very recently decided to close down their largest natural gas field, because there is some concern that production