Mining explorer disagrees with mining tax changes
Majority of the miners have expressed dismay over the resource super tax profits – except for one.
Panax Geothermal, a mining explorer, told media on Thursday that any change to the proposed new mining tax will hurt its operations and businesses.
Panax managing director Bertus de Graaf said the new mining tax will be good for the company asit would receive benefits or rebates for its $15 million well from the federal government.
“The mining tax will help any explorer including Panax geothermal, if it was now in operation, at the end of the year, we would get about a third of the cost back from the government,” Dr. de Graaf told AAP.
Dr. de Graaf said the federal government's proposal on mining tax is favorable to their company.
“If they make alterations in the scheme, in the end it will fall apart.”
The resource super profits tax, which enforces mining companies to pay a 40 per cent on profits above normal levels, will commence on July 1, 2012.
However, a new resource exploration rebate will provide companies a refundable tax offset for the expenses incurred in explorations on minerals and geothermal energy sources.
Meanwhile, Panax also announced its drilling efforts at its Salamander-1 geothermal well near Penola in South Australia has produced steam.
The company said its next move is in June when testing will occur if it can convert steam to base-load power, which will become Australia's first if proved successful.