Fight continues over royalties of Australia's mining tax
The fight between the big miners and the Australian federal government over who will pay any increase in state-based royalties when the new mining tax is introduced has been intensifying on Tuesday.
The 30 percent minerals resource rent tax (MRRT) is due to operate from July 2012, and the government has earlier signed an agreement stating all royalties will be refunded under the new tax.
However, there is a dispute with mining companies Xstrata, Rio Tinto and BHP Billiton over whether all future state royalties will be refunded under the new tax.
According to Xstrata, it will have to review up to 20 billion U. S. dollars worth of planned investment if the issue is not resolved.
However, Prime Minister Julia Gillard said the federal government would not be footing the bill, if state governments changed royalty arrangements.
Xstrata chief executive Peter Freyberg criticized the government's comments, saying that his company would not have signed a compromise deal with Gillard in July if it was not clear- cut.
Opposition resources spokesman Ian Macfarlane said it appeared states could continue increasing royalties.
"So we could see some states now taking bigger shares of royalties and leaving the (federal government's) budget in complete disarray," he told ABC Radio on Tuesday.
"In her rush to get something tied down so she could go to the election, she (Gillard) has made a complete mess of the compromise deal that she's made with the three large mining companies."
Meanwhile, Treasurer Wayne Swan will not say whether the government will make changes to state royalty refunds in its mining tax deal.
But Swan said he is confident the government can resolve any disagreements with the miners.
"There is no doubt that everybody is aware that we can't have a situation where state governments would just willy nilly put up their royalties. That wouldn't make any sense. It's not common sense," he told Australia Associated Press.
Swan said the tax is still being "refined" and the government is committed to working with the industry.
Source: Xinhua
The 30 percent minerals resource rent tax (MRRT) is due to operate from July 2012, and the government has earlier signed an agreement stating all royalties will be refunded under the new tax.
However, there is a dispute with mining companies Xstrata, Rio Tinto and BHP Billiton over whether all future state royalties will be refunded under the new tax.
According to Xstrata, it will have to review up to 20 billion U. S. dollars worth of planned investment if the issue is not resolved.
However, Prime Minister Julia Gillard said the federal government would not be footing the bill, if state governments changed royalty arrangements.
Xstrata chief executive Peter Freyberg criticized the government's comments, saying that his company would not have signed a compromise deal with Gillard in July if it was not clear- cut.
Opposition resources spokesman Ian Macfarlane said it appeared states could continue increasing royalties.
"So we could see some states now taking bigger shares of royalties and leaving the (federal government's) budget in complete disarray," he told ABC Radio on Tuesday.
"In her rush to get something tied down so she could go to the election, she (Gillard) has made a complete mess of the compromise deal that she's made with the three large mining companies."
Meanwhile, Treasurer Wayne Swan will not say whether the government will make changes to state royalty refunds in its mining tax deal.
But Swan said he is confident the government can resolve any disagreements with the miners.
"There is no doubt that everybody is aware that we can't have a situation where state governments would just willy nilly put up their royalties. That wouldn't make any sense. It's not common sense," he told Australia Associated Press.
Swan said the tax is still being "refined" and the government is committed to working with the industry.
Source: Xinhua
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