Even if these major projects are only delayed rather than shelved, future metal production will surely suffer and add a premium to miners outside of Australia.
Regards - VHF
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Xstrata has halted investment in two projects in Australia because of a new federal tax on mining profits
Radio New Zealand
June 4, 2010
The federal government proposes a 40% tax on mining profits from 2012. Estimated revenue would be $A9 billion per year.
Xstrata is shelving investments worth $A586 million in the Wandoan thermal coal project in Queensland and an extension to the life of the Ernest Henry copper mine.
The mining group says the projects would have created over 3000 new jobs.
The government says the projects are on hold because of other issues such as land access and power supply, but Xstrata Coal says that's not true.
Last month, iron ore miner Fortescue Metals threatened to abandon $A15 billion worth of new projects, unless plans for the mining tax were watered down or axed.
