Big miners find revised tax encouraging
Global miners were encouraged by Gillard's announcement of a revamped resource super-profits tax, which has previously infuriated the industry in its original state.
Major players BHP Billiton Ltd, Rio Tinto Ltd and Xstrata said in a joint statement that the government's revised Mineral Resource Rent Tax (MMRT) represents "very significant progress".
BHP Billiton said it was reassured by the government's decision to addresses many of the miner's primary concerns with the original proposal.
"There is still a great deal of work to be done before this tax is enacted, and we will work constructively with the government to ensure that the detailed design of minerals taxation maintains the international competitiveness of the Australian resources industry into the future and is in the long term interests of the industry and all Australians," said chief executive Marius Kloppers in a statement.
"We are encouraged that the MRRT design is closer to our frequently stated principles of sound tax reform, in that the proposed tax will be prospective in its treatment of profits from our iron ore and coal businesses, and not apply to the other commodities in our portfolio."
"As we have previously stated, BHP Billiton believes that tax reform that is prospective, competitive, differentiated and resource-based will ensure that the Australian mining sector continues to grow through investment in the industry which benefits all Australians," Mr Kloppers said.
According to Rio Tinto, the MRRT was a significant improvement on the 40 per cent RSPT championed by former Prime Minister Kevin Rudd.
"Recognition of market value for existing mines and a reduction in the headline tax rate represent significant progress in achieving Rio Tinto's fundamental principles of tax reform," said Rio Tinto Australia managing director David Peever.
Except for iron ore and coal, the government has excluded all commodities from the tax, easing worries about the levy's possible impact on base metal projects.
While the original mining tax launched in May has cost Mr Rudd's job, the revamped deal is a huge victory for new Prime Minister Julia Gillard and may pave the way for her to call a quick election.