Council CEO Dr Nikki Williams also said the tax would be a “token compensation” as miners look for work.

“We’re 100 per cent behind action on climate change, but you have to ask whether this is really about cutting emissions or cutting jobs and taxing the mining industry out of business,” Dr Williams said.

“In addition to the carbon tax, a tax hike on diesel announced today is yet another nail in the coffin; another 17 per cent on top of the new mining tax, royalties, company tax and other fees that mining companies pay.

“Taxing coal mining here will only reduce global emissions if other countries do the same. This new tax will lead to job losses and force some mines to close, because every tonne of coal not being produced here will be produced somewhere else with no environmental benefit.

“Research shows that 3,000 NSW coal mining jobs are at risk in the first three years of the carbon tax, not to mention the thousands of others our industry supports indirectly, without reducing global emissions.

Dr Williams also said that there was a huge question mark over the future of mines supplying power stations because they can’t pass on the cost of the tax.