Mine Tax Should Be Cut From Budget, Macarthur Says
June 24, 2010, 10:14 PM EDT(Updates with comment from Xstrata in fourth paragraph.)
By Elisabeth Behrmann
June 25 (Bloomberg) -- Australia’s Prime Minister Julia Gillard should remove the anticipated revenue from the proposed mine tax from budget estimates to show good faith in talks with mining companies, said Macarthur Coal Ltd.
“It is not possible to negotiate in good faith with a big hairy monster like that looking over your shoulder,” Keith de Lacy, chairman of Brisbane-based Macarthur said in an emailed statement. “In return the mining industry would be fair dinkum in its desire to negotiate a fair return for the use of the non- renewable resources that belonged to all Australians.”
Gillard today said she had met with Treasurer Wayne Swan and Minister for Resources and Energy Martin Ferguson to discuss strategy on negotiations with the mining industry about the government’s proposed 40 percent tax on mine project profits.
Separately, Xstrata Plc said the company was “encouraged” by the government’s willingness to enter into negotiations.
“We will participate in those negotiations in good faith but believe that it is of the utmost importance that negotiations are concluded as rapidly as possible to avoid further damage to the industry’s growth prospects in Australia,” Xstrata said in an emailed statement.
Xstrata this month halted spending on projects worth A$6.6 billion ($5.7 billion) because of the planned tax.
--Editors: Andrew Hobbs, Keith Gosman
To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net
To contact the editor responsible for this story: Andrew Hobbs at ahobbs4@bloomberg.net
