BHP in fresh attack on Aussie mining tax

BHP chairman Jac Nasser has written to shareholders to restate the mining giant’s opposition to the new super tax on the mininmining belt conveyor manufacturers usag industry proposed by the Australian government. He said meetings with government representatives since the controversial plan was first announced on 2 May have been about how the tax would be brought in, not about its “major design features (and flaws)”.

Rumours that the tax idea will be watered down are doing the rounds following the Australian prime minister’s interview with Channel Seven in which he indicated talks with miners will probably result in a deal. Kevin Rudd’s socialist administration wants to slap a 40% tax rate on profits, but BHP and other heavyweights says they already pay enough to the government’s coffers. Total taxes paid by BHP’s Australian operations in relation to the financial years 2004 to 2009 inclusive exceeds A$24bn. “There are now several expert reports that demonstrate the tax will cut investment in the Australian minerals industry and negatively affect Australia's economic future,” said Nasser.