MinRes to put lithium mine on ice, to cut 300 jobs
The company will put its Bald Hill lithium mine in Western Australia under care and maintenance starting this week.
The Australian government’s windfall tax on coal and iron ore miners’ so-called “superprofits” has raised a paltry $130 million over the first six months.
The money raised to 31 December 2012 under the minerals resource rent tax (MRRT) compares to a target of $39 billion set by the government through 2020 and $1 billion for the current financial year.
Australia’s tax office reportedly spent $50 million preparing and instituting the tax which affects a few dozen companies including BHP Billiton, Xstrata and Rio Tinto operating in the country.
Australian miners with profits or more than $75 million a year are taxed at 30% which translates into an effective rate of 22.5% after deductions and rebates.
Miners also have to contend with a tax of $24.50/tonne on carbon emissions that kicked in at the same time as the MRRT.
Australian football image by Neale Cousland / Shutterstock.com
