Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Australia’s Minister for Resources, Martin Ferguson, has rejected reports in the Indian press that the carbon tax and mineral resources rent tax will deter foreign investment as it pushes up the price coal imported from Australia.
Australia’s controversial carbon pricing scheme passed parliament last week. The laws – fiercely opposed by the country’s mining sector which says it will lead to more than 20 mine closures and cost thousands of jobs – will force Australia’s top 500 polluting companies to pay a tax of $24.50/tonne on carbon emissions from July 2012.
On top of the carbon tax set to kick in mid-2012, Australian miners also have to contend with the new minerals resource rent tax (MRRT) set at an effective 22.5% rate on the so-called super-profits of the extractive industries.
The Brisbane Times reports Ferguson said after three days of talks with Indian mining companies and government officials: “Everybody I’ve spoken to in India is looking to invest in Australia. They don’t see the MRRT and the carbon tax as a barrier.”
India’s need for overseas coal is due to grow massively in the next five years as it tries to bring electricity to the 400 million people who live without it. Local papers say the carbon tax would lead to an increase of $0.01 per kilowatt hour for power plants using Australian coal.
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Adasfaryatio
Its a huge risk government of Australia is taking by taxing this much for a tonne.Not a smart move in my opinion.Many people will become jobless.A mining engineer’s job is full of risks already it requires courage,study and hard work altogether for a single day’s digging.Universities started to close their department of mining engineering.We should encourage people to take this job not discourage.At least this is what I believe.