Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
wa-region-map-large3.gif
WA Mines Minister, Norman Moore, told the Paydirt 2011 Australian Nickel Conference, last week that “the federal government’s proposed Mineral Resource Rent Tax (M-R-R-T), and the carbon tax are challenges this government and industry are facing. The M-R-R-T is expected to apply from July 1 next year, applying a rate of 30% to all iron ore and coal projects.”The state government’s position on this new tax is clear. …we oppose it and believe it will threaten the WA resource industry’s ability to compete in the global market place. …the same sentiment applies to the proposed carbon tax. The WA resources sector is energy intensive and operates in a competitive world market.
“….competing with nations which don’t have a carbon price can only adversly affect our competitiveness.
“…currently the federal government does not recognise the emergency of Africa, South America and Central Asia as attractive destinations for resources investment.
“….the state government will continue to argue against the implementation of these taxes in negotiations with the federal government.
