"The Diesel Fuel Rebate Scheme is an administrative arrangement to rebate taxes that should not have been paid in the first place. It is a rebate for excises paid by mining and primary industries in advance, where fuel is used for off-road applications such as power generation and mineral processing," said CME chief executive Tim Shanahan.

"The WA mining sector would be bitterly disappointed if the Federal Opposition elected to dismantle a cornerstone energy program such as the Diesel Fuel Rebate Scheme," he said.

Shanahan said the Diesel Fuel Rebate Scheme had enjoyed bipartisan support at the highest levels of Australian political leadership, even after rigorous reviews and internal assessments of the scheme. It was only this year the Diesel Fuel Rebate Scheme has been transformed into a comprehensive Energy Grants (Credits) Scheme.

"The significance of this rebate cannot be understated for the ongoing development of our industry, particularly in remote areas of WA where there is no other source of fuel such as natural gas or grid electricity."

"The Federal Opposition should be mindful of the significant impact such a policy proposal would have on the competitiveness and viability of many regional and remote minerals operations and supporting communities," he said.