Australian miner Rio Tinto has warned that the new resources tax announced by the Australian government could erode the country's competitiveness, severely curtail investment and limit jobs growth.
"We are concerned about the inclusion of existing operations and the apparently arbitrary way the new resources tax was set at 40 percent. Taxing 40 percent of profits over the long-term bond rate, together with corporation tax, would make the Australian minerals sector the highest taxed in the world, seriously eroding competitiveness," said Rio Tinto managing director Australia, David Peever.
"Altering the rules for existing multi-billion dollar projects in mid-stream - after large amounts of capital have already been put at risk over many years - would be the worst possible message Australia could send to investors," he added.
As SteelOrbis recently reported, other major Australian miners BHP Billiton and Xstrata have criticized the new tax plan on similar grounds.