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Mining Tax Grab - How will it pan out?

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Macquack said:
Royalties are not a tax.

Royalties are the price paid for the minerals (stock in trade) that mining companies dig out of the ground.

Personally, I would prefer an increase in the royalties rate rather than the super profits tax. It would be fairer and much simpler.

How should get the royalties is another question.
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Royalties are not a tax? However, it is doubtful whether we can rely solely in OECD definitions to conclude that mining royalty payments do not constitute duties of excise under the Australian interpretation of the term. This is for two reasons: firstly the long established principle by the High Court that a tax on a step of production is a duty of excise; secondly that the structure of mineral royalties taxes most minerals - though not all - at a step of production beyond that of extraction of the resource.

The Henry Tax revue suggested the "royalties" be removed and a flat tax placed on the mining companies. Not this double dipping we have now to plug the blackhole budget of Kruddy & Swanny.
 

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Iron ore in WA for RIO and BHP 3.75% royalty for fines in a deal struck in the 60s apparently.
They must sit in the boardroom and pi$$ themselves laughing at the deal they get from us dumb aussies
 
1) With a loss to the Labor Government at the next Federal election. Best case scenario
2) Change of leader for the Labor Party due to negative polls. Second best case scenario
3) Greens have balance of power in Senate. Bottle of gin, warm bath and a packet of razor blades scenario
4) Who cares that billions of dollars of exploration and mining have been shelved or abandoned?
 
So, looking at it, the present Gov is saying that anything above the bond rate (between 5%-6%), will be subject to the super profits resource rent tax in the resource industry.
What about the banks and how much money they are making. The big 4 made a combined total of more than $13billion. Shouldn't that also be subjected to a super profit tax?
:2twocents
 
trainspotter said:
4) Who cares that billions of dollars of exploration and mining have been shelved or abandoned?
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Does not bother me.

The resources can stay in the ground for future generations.

Trainspotter, I thought you were a pearl farmer, not a pearl miner.
 
Macquack said:
Does not bother me.

The resources can stay in the ground for future generations.

Trainspotter, I thought you were a pearl farmer, not a pearl miner.
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LOL Macquack ...... primary industry man. I care that the great big naughty mining companies are making huge profits and employing lotsa skilled people. These are the CUBs that buy my pearls. They also buy motor cars, houses, clothing and generally keep the economy afloat in WA. Without them we would be stuffed as it was pretty much the great big naughty mining companies that saved our bacon during the GFC and had FLICKALL to do with Kevin Rudd and his economic stimulus. The Chinese kept buying our iron ore and natural gas at vast quantities at a PRIMARY level. Forget the Plasma TV's from Hardly Normal and the BER and the Insulation Debacle. Only a select few made any money out of the so called stimulus !!
 
trainspotter said:
LOL Macquack ...... primary industry man. I care that the great big naughty mining companies are making huge profits and employing lotsa skilled people. These are the CUBs that buy my pearls. They also buy motor cars, houses, clothing and generally keep the economy afloat in WA. Without them we would be stuffed as it was pretty much the great big naughty mining companies that saved our bacon during the GFC and had FLICKALL to do with Kevin Rudd and his economic stimulus. The Chinese kept buying our iron ore and natural gas at vast quantities at a PRIMARY level. Forget the Plasma TV's from Hardly Normal and the BER and the Insulation Debacle. Only a select few made any money out of the so called stimulus !!
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If you think that mining alone saved this country from the economic drama,
you better lay off that $70 a bottle woobler you have been snoggin:D
 
todster said:
If you think that mining alone saved this country from the economic drama,
you better lay off that $70 a bottle woobler you have been snoggin:D
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Firstly there was the GFC – a deep freeze in global interbank lending as housing markets collapsed across the western world. Australia avoided this almost entirely by deploying the government balance sheet in support of our bank/housing complex, which owed roughly $400 billion in overseas debts. These loans were going to be called in until the government guaranteed them.

The banks' lending was kept within sensible limits by the Australian Prudential Regulation Authority and their own management teams.

The second phase, as the bank crisis morphed into a credit crunch, was the collapse of global trade as what had been thought to be stable external imbalances corrected. Western current account deficits contracted and surplus production in eastern nations shrivelled. The mining boom generates most of its employment impact in other industries by lifting national income and spending ... even at its weakest point in May last year, mining employed 16 per cent more workers than two years earlier and nearly double the number six years before.

Mining in the meantime just kept on chugging away in the background employing people and selling our iron ore and LNG offshore.

YES the government "guaranteed" the big 4 (and others) debt which IMO was totally unnecessary for many and various reasons which I have stated previously on many threads in ASF.

More woobler please.
 
Not really into conspiracy theories but isn't it convenient that 6 mining company executives have had a plane crash? Wonder if Kevin Rudd will get the blame for this? Afterall he gets the blame for everything else.
 
trainspotter said:
Not really into conspiracy theories but isn't it convenient that 6 mining company executives have had a plane crash? Wonder if Kevin Rudd will get the blame for this? Afterall he gets the blame for everything else.
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I think Wilson Tuckey already linked the two
 
Interesting comments from Twiggy today....

BHP, Rio agree to higher WA royalties

extract....

Meantime, mining magnate Andrew Forrest has proclaimed that the federal government's proposed resources super-profits tax is "officially dead''.

The "heap of garbage'' should never have been taken out of the can, he said.

The head of Fortescue Metals Group has been one of the loudest critics of the proposed 40 per cent tax on mining companies.

"The RSPT is now officially dead,'' Mr Forrest told reporters in Parliament House after attending a business forum lunch for Chinese Vice President Xi Jinping today.

"If it proceeds forward it will look nothing like that dreadful economy-smashing tax.''

Mr Forest said concerns about the tax had been expressed around the globe.

"Capital that was to come to Australia, is now not coming, and capital that is here has either left or is considering leaving,'' he said, adding the tax was "theoretical hogwash''.

http://www.theaustralian.com.au/bus...her-wa-royalties/story-e6frg9df-1225882359047
 
4) Who cares that billions of dollars of exploration and mining have been shelved or abandoned?[/QUOTE]

China to invest $10 billion in aussie resources in a deal signed today
 
Most of those DEALS where MoU's. Note signed seal and delivered.

Beware of chinese whispers.

Cheers
 
China to invest $10 billion in aussie resources in a deal signed today - todster wrote

China had already committed to the PURCHASE of these base materials a loooooooooooong time ago. Has nothing to do with exploration of mining or the increase of output of existing mines. Just means they gonna take more of the output from the existing mines over the next 25 to 50 years (expected mine life).

EXAMPLE:

Project Location : Western Australia
Project Manager : Karara Mining Ltd
Project Owner : 50:50 JV Gindalbie Ltd and AnSteel.
Constructor :
Construction Period : 2008 - 2010
Project Value : A$1.8 Billion
Project Status : Committed

PROJECT SCOPE

The Karara Iron Ore Project consists of the development of Port, Rail and Mine site facilities for the export of iron ore products mined from the iron ore deposits located at the Karara mine site, approximately 320 kilometres north-north-east of Perth.

The area is located in the vicinity of existing roads, rail, port and power infrastructure.

The Karara deposit has a current magnetite JORC resource of 1.43 billion tonnes at 36.3% Fe and initial reserve of 497 million tonnes, supporting a 40 – 50 year mine life at a production rate of 8 million tonnes per annum.

Concentration process at the Karara mine site is to produce an initial 8 Mtpa (dry) of 68% Fe. concentrate.

The magnetite concentrate is to be transported by rail to the Port of Geraldton, where it will be stockpiled prior to loading for shipment to AnSteels’ Bayuquan steel mill, which is located adjacent to the port of Yingkou in northern China.

Gindalbie sealed a $US65 billion ($A70.01 billion) iron ore sales contract with Ansteel in March 2010.

The contract is for life-of-mine production from the Karara magnetite project in Western Australia's midwest region.
 
trainspotter said:
China to invest $10 billion in aussie resources in a deal signed today - todster wrote

China had already committed to the PURCHASE of these base materials a loooooooooooong time ago. Has nothing to do with exploration of mining or the increase of output of existing mines. Just means they gonna take more of the output from the existing mines over the next 25 to 50 years (expected mine life).

EXAMPLE:

Project Location : Western Australia
Project Manager : Karara Mining Ltd
Project Owner : 50:50 JV Gindalbie Ltd and AnSteel.
Constructor :
Construction Period : 2008 - 2010
Project Value : A$1.8 Billion
Project Status : Committed

PROJECT SCOPE

The Karara Iron Ore Project consists of the development of Port, Rail and Mine site facilities for the export of iron ore products mined from the iron ore deposits located at the Karara mine site, approximately 320 kilometres north-north-east of Perth.

The area is located in the vicinity of existing roads, rail, port and power infrastructure.

The Karara deposit has a current magnetite JORC resource of 1.43 billion tonnes at 36.3% Fe and initial reserve of 497 million tonnes, supporting a 40 – 50 year mine life at a production rate of 8 million tonnes per annum.

Concentration process at the Karara mine site is to produce an initial 8 Mtpa (dry) of 68% Fe. concentrate.

The magnetite concentrate is to be transported by rail to the Port of Geraldton, where it will be stockpiled prior to loading for shipment to AnSteels’ Bayuquan steel mill, which is located adjacent to the port of Yingkou in northern China.

Gindalbie sealed a $US65 billion ($A70.01 billion) iron ore sales contract with Ansteel in March 2010.

The contract is for life-of-mine production from the Karara magnetite project in Western Australia's midwest region.
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No the 9 billion for coal mine rail and load out facility near Bowen in QLD
 
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