On June 16, officials from Australian mining giants BHP Billiton and Australian Rio Tinto and also from Swiss-based miner Xstrata Plc met with the Australian federal government in Canberra to discuss its proposed mining tax.
According to a joint press release, during the meeting the companies outlined three fundamental areas of concern with regard to the proposed Resources Super Profits Tax (RSPT):
1) Ensuring the RSPT is not applied retrospectively, so existing projects where investment decisions have already been made are not affected;
2) The need for an effective tax rate that retains Australia's international competitiveness as an investment destination; and
3) Stability arrangements for taxes and royalties for existing and new projects.
The miners said that at present there has been no formal acknowledgment from the government that these key issues will be addressed.
As SteelOrbis previously reported, various companies with mining investments in Australia have reacted to the proposed tax, saying that it will significantly increase the financial burden on investors, blocking investment coming into the country and consequently hindering employment.
Xstrata Plc recently announced the suspension of AU$586 million (US$497 million) of expenditure to develop two different mining projects in the country, stating the projects would not be viable due to the new tax.