Australia to propose tax incentives for critical minerals
The proposed law will set up a tax incentive worth 10% of relevant processing and refining costs for 31 critical minerals.
Australian Financial Review (sub required) reports the state government has scrapped plans for a A$9 billion (US$8.85 billion) coal terminal expansion after world number three miner Rio Tinto withdrew from the project at Queensland’s Abbot Point, Australia in April.
The $9 billion project approved by the state government in December, was designed to up the port’s coal export capacity to 385 million million tonnes – a more than sevenfold increase from the current annual tonnage. The minister responsible said funding issues and environmental regulations were to blame for the decision.
Platts quoted a Rio Tinto official at the time as blaming “changes in the economic environment and the commitments required to progress this option” as reasons for pulling out.
Bloomberg reports thermal-coal buyers in China are pushing to have shipments delayed – by as much as two weeks – as stockpiles in the country grows.
While coal for the power-generation industry benchmark for Asia fell to $95.95 a tonne on Monday, the lowest since October 2010, metallurgical coal – a vital ingredient for steelmaking – seems to be holding up better.
Coking coal has been trading steady this year around the $200 a tonne level, down from a temporary spike above $300 a tonne following floods in Australia early 2011.
According to researcher Wood Mackenzie’s principal metallurgical-coal analyst quoted by The Australian on Monday prices are “well-supported at current levels” and a slow rise in the near-term is likely.
The announcement follows news last week that BHP Billiton, the world’s largest miner, has put the brakes on $80 billion of capital expenditure.
Read more about what some are calling the end of supercycle >>
Comments
Idm
Hello, I am a Mining Engineer and i work with company called Carbones del Guasare, it is industry of coal. In this moment there is a produtcion low, but our coal is excellent quality. i wish any help for knowloged and better for my job and the company.
thanks