Exploration and existing projects for Breakaway continue despite mining tax disputes
One resource company is not afraid of continuing its explorations and existing projects in North-West Queensland despite the plan for the Federal Government to push through with the resources super profits tax.
A BHP Billiton spokesperson announced on Thursday it continues to drill for lead, silver, and zinc in the Cloncurry district, which is part of a joint venture with Breakaway Resources.
However, Breakaway managing director David Hutton admits the tax does create a level of uncertainty.
“Obviously, the hurdles that any project would have to jump to be commercial in the future would obviously have to be revisited but at this stage this is exploration and business as normal,” Mr. Hutton said.
“But as I say the implications for longer term development I think I still have to be better understood and thought about.”
Meanwhile, Rod Eddington, chief advisor on major building projects of Prime Minister Kevin Rudd, has advised the government to restart its resource tax from scratch and provide proper consultations with the mining industry.
Mr. Eddington commented the need for the negotiation process, particularly with the mining leaders, since good policy follows proper process. He adds that an absence of consultation will lead to "serious divisions in the community".
He urged the Government to consult the mining industry in a comprehensive way to achieve a good policy process on the tax.