http://www.smh.com.au/business/mini...iew-olympic-dam-expansion-20120822-24m4i.html
BHP's $30 billion Olympic Dam expansion has been shelved.
BHP's $30 billion Olympic Dam expansion has been shelved.
BHP pulls out of Olympic Dam expansion
- Thread starter mattnz
- Start date
Had a chat with Andrew Wilson the other day and he reckons investors have been waiting on the confirmation of this project. Not sure many people will be SA-inclined now...
Initial few thoughts
* good for BHP share price
* bad for future SA government revenues
* hopefully the nation realises that there are far more fundamental public policy issues than a few thousand refugees
* good for BHP share price
* bad for future SA government revenues
* hopefully the nation realises that there are far more fundamental public policy issues than a few thousand refugees
BHP have been saying this for months.
Now what about the budget Mr Swan?
The MRRT Mine Tax figures are based on all works going ahead and making $$$$$$$ in tax for the Labour Gov.
Please explain? Why you the Treasurer failed to recognise what the rest of the worlds knows. Booms bust.
Regards Peter 14.7
Now what about the budget Mr Swan?
The MRRT Mine Tax figures are based on all works going ahead and making $$$$$$$ in tax for the Labour Gov.
Please explain? Why you the Treasurer failed to recognise what the rest of the worlds knows. Booms bust.
Regards Peter 14.7
Peter, believe uranium/copper is not included in the MRRT.
Noted. Which is even more alarming as I was commenting more generally on the belief that Mining was a never ending magic pudding of tax.
We are going to have a hard landing.
Regards
Peter 14.7
We are going to have a hard landing.
Regards
Peter 14.7
Premier's comments now released: http://www.premier.sa.gov.au/PDF/59359_Olympicdamstatement.pdf
Now someone please inform Abbott and Pyne
Some big bets were made. Could have made a killing I guess, but they'll end up burnt.
Iron Ore represented USD 14.2b of the USD 27.2b Group EBIT.
Interestingly coal, petroleum and iron ore were the only sectors whose EBIT grew this year.
Revenues in coal, petroleum and iron ore increased 13.4% in FY2012 compared to FY2011, even despite significant falls in iron ore prices especially.
Iron ore and coal are affected by the MRRT.
So overall 50% of their overall income is to be taxed when it was not taxed like this before. Thanks, Peter
FYI the Olympic Dam expansion would start it's life as a 5 year tax deduction. That's five years of blasting, digging and overburden haulage to reach the ore body.
And as the recent McKinsey report points out, our miners will need to find a way to improve the productivity of their capital if we are to enjoy a stable or improving standard of living. BHP need to find a cheaper way to dig the pit.
Beyond the boom: Australia's productivity imperative
Australia can’t control commodity prices and global demand for resources, but by reversing its slide in productivity, it can take steps to create a softer landing when the boom eventually subsides.
Gottliebsen writes that some of BHP's problems are of their own making. A recent share buyback at the top of the boom and insufficient progress on a method for the recovery of uranium from an acid leach in saline water at Olympic Dam.
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Thanks will read up, Peter
Port Hedland harbour extension is not going ahead either.
http://finance.ninemsn.com.au/newsbusiness/aap/8520330/bhp-profit-down-by-more-than-1-3
Regards
Sheryn
http://finance.ninemsn.com.au/newsbusiness/aap/8520330/bhp-profit-down-by-more-than-1-3
Regards
Sheryn
