Here is a list of shame that makes a mockery of Ken Henry and Kevin Rudd’s claims that the new mining tax will grow the industry. All investment either put on hold, cancelled or now under review since Rudd announced the mining tax:
1. Fortescue Metals = $17 billion - Solomon and Western Hub projects put on hold,
2. Xstrata = $30 million - copper exploration cancelled,
3. BHP =$37.5 billion – Olympic Dam, Yeelirrie uranium project and the Bowen Basin being reviewed to put on hold,
4. OZ Minerals = $300 million - Prominent Hill put on hold,
5. Santos = $7.7 billion - Gladstone liquified natural gas ‘under threat’ of cancellation or being put on hold,
6. Cape Lambert Resources Ltd = $15 million - iron ore exploration cancelled,
7. Rio Tinto = $? – range of projects under review because of the mining tax,
8. Alcoa = $? – reviewing how the tax would negatively impact its operations, and
9. Origin Energy = $35 billion – coal seam gas project potentially delayed or put on hold.
UPDATE
The Coalition should push for a referendum to amend the constitution so that tax in general cannot be retrospective and so an individual or company/corporation cannot be charged more than 50 per cent tax on their income or profits. This would put Rudd in a bind – because the constitutional amendment would apply not just to mining corporations but to all individuals/’working families’. It would also help sure up support for the dollar and stock exchange – restoring market confidence in the economy. Rudd, give us a referendum on the issue!
UPDATE II
It keeps on getting better:
ONE third of the value of new Pilbara iron ore projects will be wiped out by the Rudd Government’s new mining tax, a Citigroup report has warned, putting essential expansion plans by three major miners at serious risk.
The report claimed the proposed Resources Super Profits Tax – which it labelled “ill-conceived” – would have a savage impact on iron ore, the commodity that has driven the boom.