Australian mining giant BHP Billiton's chairman Jac Nasser has sent a letter to the company's stakeholders regarding the new mining tax proposed by the Australian government, stating that the new tax should not include existing investments.
The letter said that the company has no issue with a review and reform of the tax system, but it must be conducted around sound principles, noting that the tax would hurt Australia's standing in the international community and all Australian families, including, the regional population.
Mr. Nasser said, "Additionally any reform should not disadvantage the resources industry compared to other industries in Australia and it absolutely must not disadvantage the Australian resources industry compared to other countries. In other words, any reform must not destroy the necessary incentives to keep investing in Australia's growth engine, the resources industry."
He pointed out that the government's proposal would see the total effective tax rate on BHP Billiton's Australian profits increase from 43 percent to 57 percent making the Australian resources industry the highest taxed in the world, compared to a tax rate of 23 percent in Canada and a range of 27-38 percent in Brazil, the tax rates in the two other major mining countries.
The company said that it will set up "information sessions" to update the shareholders on the company's prospect according to potentially changing circumstances.