Xstrata shelves Australian projects

[Vox Populi Vox Dei]

As if the government couldn't see this coming. I don't understand the logic that many working-class parties have with taxing everything under the sun. Every problem, they say, can be rectified with 'taxing' people - see the 'green tax' and other assorted taxes that crept up during New Labour's reign in Britain.

Business Day

Xstrata has shelved spending on projects worth A$6.6 billion (R42.3bn) in Australia, the first global mining company to suspend major work because of Prime Minister Kevin Rudd's planned tax on mine profits.

The A$586 million of work on the expansion of the Ernest Henry copper mine, approved in December, and the A$6bn Wandoan coal project were not viable under the new tax, Switzerland-based Xstrata said yesterday in a statement.

....

BHP Billiton and Rio Tinto, which are reviewing projects in Australia, the biggest exporter of iron ore and coal, are also campaigning against the tax. Fortescue Metals Group, Australia's third-largest iron ore producer, last month put $15 billion (R115.2bn) of projects on hold. Xstrata is the largest thermal coal exporter.

 

[dlk001]

As if the government couldn't see this coming. I don't understand the logic that many working-class parties have with taxing everything under the sun. Every problem, they say, can be rectified with 'taxing' people - see the 'green tax' and other assorted taxes that crept up during New Labour's reign in Britain.

Business Day

Just like in South Africa during 2000-2002, these mining companies will make threats but in the end, they will absorb the tax. It might not be as high as 40%.