RSPT will hurt resource sector - Atlantic
Another company has publicly aired out its disapproval on the federal government's resource super profit tax as it will damage the resources sector.
Atlantic Limited, a former pearl marketing company, told media on Monday the mining tax will not materially have a big impact on its Windimurra vanadium mine in Western Australia, however, it is concerned on the overall effect on the resource industries.
It was revealed that its plans to develop the partly-constructed mine under a partnership with Mineral Resources Limited was put on hold when its previous owner Midwest Vanadium Pty Ltd was put in a voluntary administration in February in 2009.
According to a statement released by Atlantic today, it strongly opposes the resource tax as its structure and design hinders the progress of the resource industry in Australia and risk Australia's sovereign ratings.
“Following analysis of the impact of the RSPT, Atlantic has concluded the RSPT will have minimal impact on the Windimurra vanadium project due to the project's large existing capital base and the circumstances under which the project will be acquired from the receiver of Midwest Vanadium Pty Ltd."
The joint venture between Mineral Resources and Atlantic is expected to spend $90 million to $100 million for construction and commissions of the project.
The acquisition of the joint venture is expected to be complete by June, with Atlantic owning 62.5 per cent of MVPL while Mineral Resources will receive 27.5 per cent.