Posted in | Iron Ore | Mining Business

Small Miners Not Happy with Mining Tax Compromise

Smaller mining companies do not seem to share the sense of jubilation that the federal government and the major mining firms like Rio Tinto, BHP Billiton and Xstrata share over the recent breakthrough on the proposed mining tax.

Smaller iron ore mining companies like Gindalbie Metals, Atlas Iron are definitely not pleased at the way the new tax is being framed. The smaller companies plan to demand significant changes to the proposed tax as they feel that the compromised deal made with the Minerals Resources Rent Tax or MMRT weighs heavily in favor of those industry mining majors who negotiated the deal.

They intend to meet Resources Minister Martin Ferguson in Perth to demand exemptions from the MRRT. The disadvantages to the mid-tier group of companies that come from the new law were highlighted by David Flanagan, the chief executive of Atlas.

According to Mr. Flanagan the hurdle rate at which the tax kicks in should be higher. He also condemned the loss of the $1.1 billion exploration rebate which allowed smaller companies to claim tax deductions.

If the government thought that replacing the RSPT with the MRRT would solve the issue, they had not envisaged this split in the mining industry.

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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