SA Premier backs miners on diesel rebate

South Australian Premier Jay Weatherill has joined the mining industry in urging the Gillard Government not to scrap the diesel fuel rebate scheme in the federal budget.

The Financial Review reports Weatherill wrote to Treasury last week stressing the importance of the rebate to SA's economy.

His comments join criticisms from BHP Billiton, Rio Tinto, AngloGold Ashanti, and other key players in the industry.

The South Australian Chamber of Mines and Energy has also expressed concerns about Federal cuts to the deductibility of exploration expenditure and research and development concessions.

SACOME previously said a Treasury decision to scrap the 32c diesel fuel rebate for miners represented a "continuing onslaught on SA's biggest export industry".

SACOME has reinforced a Minerals Council argument that the rebate is not a subsidy because diesel represents a "critical business input".

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