Swiss mining giant Xstrata Plc has announced that it has suspended AU$586 million (US$497 million) of expenditure to develop both the AU$6 billion (US$5.1 billion) Wandoan thermal coal project and a AU$600 million (US$510 million) project to extend the life of the Ernest Henry copper mine, which are both in Australia, with immediate effect.
A company statement dated June 2 pointed out that together these two projects in Queensland would have created 3,250 new jobs which are now at risk. "The decisions represent the initial findings from Xstrata's ongoing review of planned investment into its Australian operations and growth projects as a result of the Australian government's proposed Resource Super Profits Tax (RSPT). The review includes growth projects comprising total investment of AU$22 billion and the potential to create 14,725 new jobs," Xstrata said, pointing out that neither projects will be viable if the RSPT is imposed.