BHP and Rio Tinto pleased with PM’s negotiation offer on proposed mining tax

Thursday, 24 June 2010 15:47:51 (GMT+2)

Following a statement by the new Australian prime minister, Julia Gillard, that her government will open the door for full and open engagement into negotiations with the objective of achieving consensus on the proposed Resources Super Profits Tax, Australian mining giants BHP Billiton and Rio Tinto delivered positive statements regarding the development.

BHP Billiton chief executive officer Marius Kloppers said, "We agree with the prime minister that ‘the uncertainty around the introduction of the proposed super mining tax must be ended'. BHP Billiton has consistently stated that any new resources tax must be prospective, competitive, differentiated and resource based."

Rio Tinto in its press release said that it has been cautiously encouraged by the prime minister's statement, stressing that the company believes it is fundamental that the negotiation process "ensures any tax reform proposal is not applied retrospectively and delivers an effective tax rate that retains Australia's international competitiveness as an investment destination."

Both companies have announced that they have immediately suspended all advertising against the reform as a sign of good faith, calling for an immediate solution so as not to undermine the Australian economy further.

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