Cement producers welcomed an exclusion from the climate change levy announced in the Budget.
The government said it would exempt energy used in metallurgical and mineralogical processes from the tax from 1 April 2014.
It will hold a consultation on the exemptions and will publish draft legislation with the 2013 Autumn Statement.
The government has not specified which sectors will benefit from the exemption, but the Mineral Products Association hoped it would apply to the cement and lime industries.
Pal Chana, an executive director at the MPA, said: “This is welcome news to the cement and lime industries who have been struggling under the weight of a cumulative cost burden of regulation and environmental taxes. If these essential industries are to remain competitive and attract investment they have to be able to compete on a level playing with others, such as France and Germany, who already exempt their metallurgical and mineralogical process from energy taxes. I am delighted that the Chancellor has listened to MPA’s arguments and look forward to working with the Treasury to secure this much needed exemption for cement and lime.”