Alliance of 3 largest miners launch fresh offensive against ‘super tax’
A loose alliance of three of the world's biggest mining companies on Thursday launched a renewed offensive against the Rudd government's plan to force a 40 percent tax on resource profits.
For the first time, BHP Billiton, Rio Tinto and Xstrata, all listed on the blue-chip FTSE 100, released a joint statement criticizing Prime Minister Kevin Rudd and castigating him for "not addressing the concerns of the mining sector."
The controversial "Henry tax" introduced in April, has been drawing flak from the mining group as it aims to slap resources companies 40 percent in taxes for operating in Australia. The mining firms initially threatened to withdraw all investments from Australia, which has now affected Rudd's chances in the general elections scheduled in October.
In the statement, the three mining giants said they had not received any "formal acknowledgement from the government that the key issues will be addressed."
The miners are asking the government to exempt from the new tax measures, existing projects and has called for a need for "an effective tax rate that retains [Australia's] international competitiveness as an investment destination" and stable "arrangements for taxes and royalties for existing and new projects."
But Rudd remains unfazed with the latest tirade from the mining giants. He told reporters in Canberra: "It is quite plain that we will be considering with different parts of the industry their respective requests for transitional arrangements which may be particular to their industries. Whether we respond positively to that is a separate matter."
Earlier, it was reported that Rudd was prepared to reach a compromise on the tax measure, particularly with the coal-seam gas sector. The deal would reduce about A$40bn (£23bn) of liquefied natural gas projects in the coal-mining state of Queensland, Rudd's political homeland and an area vital to his election chances.