Boral’s CEO Mike Kane has said that failing to access coal seam gas in Australia will ensure that the manufacturing industry will have a “use-by” date.
Kane, appearing on Financial Review Sunday yesterday, said that CSG would be essential in guaranteeing the industry survives.
"If it's not exploited properly, I think Australian manufacturing has a use-by date attached to it because the inflationary pressures in energy will kill domestic manufacturing through time," Fairfax quotes him as saying.
"Coal seam gas is part of the future recovery for Australian manufacturing."
Kane mentioned the significant cost pressures that his company, Australia's biggest construction materials maker, is under on the program. He has overseen 1,000 redundancies since beginning in his role 18 months ago.
Boral’s gas costs will rise by 20 per cent in from this year in NSW and Victoria and under contracts signed recently.