Rio Tinto exec slams super-profits tax; urges shareholders to speak up
Rio Tinto chief executive Tom Albanese joined attacks against the government's planned super-profits tax saying that the tax measures would reduce Australia's competitiveness and hurt investments.
In his first comments on the proposed tax measure, Albanese said he was shocked by the government's proposal and urged Rio Tinto's shareholders to write the government with their views on the proposed tax scheme.
"I think the Australian government is very receptive to hearing as many views as possible and they are very much focused on the politics of Joe Australian and Jane Australian, their superannuation funds and whether they have a job," he said.
"But they are also logical and rational and respect that Australia . . . needs foreign investment to grow."
Albanese said Rio Tinto is reviewing expansions of its West Australian iron ore operations, its Argyle diamond mine in WA and its Ranger uranium mine in Kakadu.
The proposed super-profits tax scheme continues to suffer backlash as mining executives and other stakeholders have expressed their opposition against it with global mining firms reacting negatively against it.
Xstrata chief executive officer Mick Davis said the Australian government's proposed tax measure is the "biggest assault" in the mining industry.
Earlier this week, Xstrata has announced it had decided to suspend its exploration activities in north Queensland.
BHP Billiton chief executive Marius Kloppers expressed concern that it would be difficult to approve new projects until the tax issue has been resolved.