Australia implemented a carbon tax of A$23 ($24.00) per ton of greenhouse gas that miners produced with similar measures awaited in Europe.
Companies using fossil fuels, starting 2015, will be required to purchase necessary permits to emit carbon dioxide further dis-incentivizing coal usage.
BHP Billiton that produces a majority of its coal from Australia has already indicated a scaling down investment in thermal coal, reported Reuters.
The company told the news agency that global energy mix is likely to have a lesser coal component in the foreseable future.
BHP Billiton coal and iron ore head Marcus Randolph stated, ""We have good assets in the (coal) business, but we’re aware of the environmental implications.
"Developing countries want low-cost energy, but you can’t deal with the carbon consequences over the long term."
The news follows Rio Tinto’s announcement in November to reduce costs by $5bn, particularly in coal and aluminum sectors.
