Posted in | Mining Business

BHP Highlights Flaw in Resources Super Profits Tax

Making another attempt to hit out at the Resources Super Profits Tax in Australia, mining giant BHP Billiton sent out a letter to shareholders pointing out a supposed flaw in the law.

According to BHP chairman Jac Nasser the proposed 40% tax on the "super profits" will impact the mining industry adversely as the investment and financial characteristics of individual minerals are different.

Mr. Nasser wants the Australian government to redesign the proposed law to allow different tax rates according to the mineral resource being mined. Mr. Nasser wants this tax be based on the value of the mineral irrespective of the infrastructural processing and other supporting activities.

Doing this would not unintentionally penalize the mining industry as per Mr. Nasser. If the redesign is not possible, he would like to see the RSPT being abandoned. However Prime Minsiter Rudd is in no mood for a compromise after his discussions in Perth with miners.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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