BC Iron continues Nullagine Iron Ore JV as planned despite proposed tax

Australian iron ore company BC Iron Limited (BC Iron) announced on May 20 that it continues to remain within schedule regarding the development of the Nullagine Iron Ore Joint Venture with Fortescue Metals Group (FMG), while it is aware of recent market speculation regarding the status and plans of a range of projects in Australia, largely brought about the uncertainty created by the announcement by the Australian government of a proposed Resource Super Profits Tax, and the subsequent confirmation by a range of companies that they will be postponing or canceling certain activities until this matter is clarified or resolved.
 
BC Iron said that it is also aware of the announcement made on May 19 in which FMG advised that it was shelving two projects, the Solomon and Western Hubs in Western Australia. This decision is said to have no affect on the development plans of the Nullagine Iron Ore Joint Venture, as ore mined from this project is due to be transported through FMG's Chichester operation.
 
BC Iron will commence mining at Nullagine later this year, and remains on track for its stated targets of shipping the first ore in December 2010 and reaching an annual production rate of three million metric tons and the shipment of one million metric tons by June 30, 2011.
 
The company expressed that it has strong views on the proposed Resources Super Profits Tax, and believes that it will have a negative impact on the resources industry and the company's plans for any additional project development in Australia.