Fortescue Metals put multi-billion-dollar iron ore projects on hold over a major new mining tax yesterday, raising pressure on Australia over a levy that has incensed the key export sector.
And chief executive Andrew “Twiggy” Forrest warned the move would force firms to look for foreign money, particularly from China, to help with further investment.
Forrest said his company might have to sell the two Western Australia expansion projects, worth a combined US$15 billion in proposed investment, as the tax affects funding opportunities.
“If we can’t rely on our own revenues to finance our own projects anymore, it absolutely means that the only source of revenue, particularly for the mining industry, will be the government of China,” he told reporters.
Fortescue said it was shelving development of its flagship Solomon Hub and Western Hub in the Pilbara region, center of a booming mining industry that steered Australia through the financial crisis without entering recession.
The proposed 40 percent levy on miners’ “super profits” has drawn a furious response from companies, with Anglo-Australian giant Rio Tinto reviewing all capital projects in the country.
Fortescue said it was placing on hold development of its flagship Solomon Hub, which is expected to produce about 160 million tonnes of iron ore a year and employ 21,000 people for its construction and operations.
The company also put the brakes on planning for its Western Hub, a US$6 billion proposed investment, which was estimated to provide 11,500 jobs.
BHP Billiton was said to be considering slashing dividend payments to hundreds of thousands of shareholders, dealing a blow to the Australian government which has framed the tax as important to upcoming elections.
Concern has also spread abroad with China raising the tax with Australian Trade Minister Simon Crean in Beijing talks this week.
“The issue was discussed in detail and both sides agreed to continue discussions on the issue,” said a spokesman for Crean, who was quizzed by Zhang Ping (張平), head of China’s National Reform and Development Commission.
NATIONAL SECURITY THREAT: An official said that Guan Guan’s comments had gone beyond the threshold of free speech, as she advocated for the destruction of the ROC China-born media influencer Guan Guan’s (關關) residency permit has been revoked for repeatedly posting pro-China content that threatens national security, the National Immigration Agency said yesterday. Guan Guan has said many controversial things in her videos posted to Douyin (抖音), including “the red flag will soon be painted all over Taiwan” and “Taiwan is an inseparable part of China,” while expressing hope for expedited “reunification.” The agency received multiple reports alleging that Guan Guan had advocated for armed reunification last year. After investigating, the agency last month issued a notice requiring her to appear and account for her actions. Guan Guan appeared as required,
A strong cold air mass is expected to arrive tonight, bringing a change in weather and a drop in temperature, the Central Weather Administration (CWA) said. The coldest time would be early on Thursday morning, with temperatures in some areas dipping as low as 8°C, it said. Daytime highs yesterday were 22°C to 24°C in northern and eastern Taiwan, and about 25°C to 28°C in the central and southern regions, it said. However, nighttime lows would dip to about 15°C to 16°C in central and northern Taiwan as well as the northeast, and 17°C to 19°C elsewhere, it said. Tropical Storm Nokaen, currently
‘NATO-PLUS’: ‘Our strategic partners in the Indo-Pacific are facing increasing aggression by the Chinese Communist Party,’ US Representative Rob Wittman said The US House of Representatives on Monday released its version of the Consolidated Appropriations Act, which includes US$1.15 billion to support security cooperation with Taiwan. The omnibus act, covering US$1.2 trillion of spending, allocates US$1 billion for the Taiwan Security Cooperation Initiative, as well as US$150 million for the replacement of defense articles and reimbursement of defense services provided to Taiwan. The fund allocations were based on the US National Defense Authorization Act for fiscal 2026 that was passed by the US Congress last month and authorized up to US$1 billion to the US Defense Security Cooperation Agency in support of the
PAPERS, PLEASE: The gang exploited the high value of the passports, selling them at inflated prices to Chinese buyers, who would treat them as ‘invisibility cloaks’ The Yilan District Court has handed four members of a syndicate prison terms ranging from one year and two months to two years and two months for their involvement in a scheme to purchase Taiwanese passports and resell them abroad at a massive markup. A Chinese human smuggling syndicate purchased Taiwanese passports through local criminal networks, exploiting the passports’ visa-free travel privileges to turn a profit of more than 20 times the original price, the court said. Such criminal organizations enable people to impersonate Taiwanese when entering and exiting Taiwan and other countries, undermining social order and the credibility of the nation’s
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