Australian Prime Minister Kevin Rudd told mining companies yesterday that he stood firmly behind his planned 40 percent tax on resource profits as the industry intensified its campaign to overturn the election-year move.
Executives from the country’s outraged mining industry, dominated by giants Rio Tinto and BHP Billiton put their case to Rudd at a closed-door breakfast in Perth, and to opposition conservatives as well.
“I was very forthright in why we believe it’s necessary … It’s obviously controversial. I don’t walk away from that,” Rudd told local radio.
He drew some comfort yesterday from credit rating agency Fitch, which said the new tax would not lead to credit downgrades for mining companies, though it could jeopardize investment.
“This news does not mark the beginning of the end for the Australian mining industry. Demand for their product is simply too strong,” Fitch said in a statement.
Rudd’s talk followed a Tuesday dinner meeting with Fortescue Metals chief executive Andrew Forrest, BHP Billiton iron ore chief Ian Ashby, Rio Tinto director Sam Walsh and Woodside Petroleum CEO Don Voelte.
The conservatives have already indicated they will oppose the tax in the upper house of parliament, where Rudd’s government lacks a majority and where the conservatives need just one other vote to defeat the tax.
“I can’t see how we could ever support it …This is a monstrous action and my expectation is that this won’t come to the parliament until next term. My expectation is that it would be either dumped or fundamentally changed,” opposition finance spokesman Andrew Robb said yesterday.
BHP Billiton chief executive Marius Kloppers indicated that the mining industry was prepared for a long campaign against the new tax, which has already prompted one small miner, Cape Lambert, to dump an iron ore project.
“We’ve got a long job ahead of us,” Kloppers told reporters as he entered Parliament House for talks with opposition leader Tony Abbott.
The head of rival miner Rio Tinto’s Australian operations, David Peever, also met Abbott.
The government announced on Sunday that the 40 percent tax would be levied on so-called super profits made by mining companies from 2012 onwards and proceeds used to fund company tax cuts, boost retirement pension savings and build infrastructure.
Fitch estimated the new tax would lift the annual tax bills of Rio Tinto and BHP Billiton by more than a collective A$3 billion (US$2.73 billion), out of combined total earnings before financing costs of around A$125 billion over the past three years.
Australian Treasurer Wayne Swan accused mining firms of making extreme claims against the new tax and senior government sources were quoted in Fairfax newspapers as saying the 40 percent rate was non-negotiable.
“There’s no doubt from some parts of the industry there is a fear campaign … This is a very, very important issue for Australia, terribly important that Australians get a fair share of their mineral resources,” Swan said.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
The Central Weather Administration (CWA) is set to issue sea and land warnings for Tropical Storm Krathon as projections showed that the tropical storm could strengthen into a typhoon as it approaches Taiwan proper, the CWA said yesterday. The sea warning is scheduled to take effect this morning and the land warning this evening, it said. The storm formed yesterday morning and in the evening reached a point 620 nautical miles (1,148km) southeast of Oluanpi (鵝鑾鼻), Taiwan proper’s southernmost point, moving west-southwest at 4 kph as it strengthened, the CWA said. Its radius measured between 220km and 250km, it added. Krathon is projected
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