Miners revolt against super tax

Miners revolt against super tax

Mining magnate Clive Palmer on Lateline discussing the Federal Government's proposed resources super tax, a policy he is fiercely opposed to.

TONY JONES: Does the super profit tax threaten the viability of your $6.5 billion Galilee basic coal project, sometimes called the biggest coal mine in the world?

CLIVE PALMER: I think it threatens the viability of our whole country.

You know, never in the history of this country has so much wealth been wiped of the ledgers of the Australian people as we've seen in the last three days when $16 billion has been wiped the value of mining stocks in Australia - when mums and dads and ordinary Australians have seen the treasurer destroy their future and the future retirement.

And this is what's really wrong - it goes at the whole viability of our nation and that's why it's got to be stopped and that's why Tony Abbott's the last sentry at the gate and he'll throw the Government out at the next election.

TONY JONES: So tell us about this biggest mine in the world - your Queensland Galilee project. Is it under threat or not in reality? Will it go ahead?

CLIVE PALMER: Well I think the things we've announced will go ahead because we've put the finance in place for the things that we've already announced. But there are projects that we haven't announced, that we've been planning, that we'd have to stall on if this was to become a reality.

But I don't believe Australians will cop it. I don't believe they'll accept the regime where normal people pay 30 cents in the dollar tax - normal companies - for putting their money in the bank.

And miners are hit 70 per cent for going out there, taking the risk, develop- creating the jobs and creating the exports.

I'm quite happy to have a super rich tax - tax me all you want to, tax me 90 per cent. Tax me 101 per cent.

But don't destroy the economy and don't destroy the industries that are employing thousands of Australians - ordinary mums and dads around Australia.

That's what the Treasurer is doing and he doesn't realise it.
 
thats the same clive palmer that is the biggest doner to the qld Liberal National Party, yes, definetly a unbiased view there
 
I love that interview.

Palmer is damned if he slags it off and damned if he doesnt.

If he doesnt he then fails in his bid to change the govermenets mind. If he does slag ait off he risks a lower share price.
 
I think the Weekend Australian said the Gov expects $9 bil/y revenue from the tax. That is a simple cash transfer. As big miners would have a PE of 15, $135 bil will be permanently wiped off the value of the mining companies.

I throw my thong at the TV every time Rudd mentions "working families" and he says he is doing it for them. But their super fund will cop a hit and I bet many retirees have BHP/Rio in their portfolios. They won't be happy. They copped it in '08 and if they are a little older the GST set them back too.

BTW This tax is on a project basis so that a miner will pay the super-tax on one project but have to fund development for the next (with mining there must always the "next") separately ie from significantly reduced cashflows or borrowings. Miners who have been around have all been screwed by bankers in the past so will probably just wait for better days.
 
I think the Weekend Australian said the Gov expects $9 bil/y revenue from the tax. That is a simple cash transfer. As big miners would have a PE of 15, $135 bil will be permanently wiped off the value of the mining companies.

I throw my thong at the TV every time Rudd mentions "working families" and he says he is doing it for them. But their super fund will cop a hit and I bet many retirees have BHP/Rio in their portfolios. They won't be happy. They copped it in '08 and if they are a little older the GST set them back too.

BTW This tax is on a project basis so that a miner will pay the super-tax on one project but have to fund development for the next (with mining there must always the "next") separately ie from significantly reduced cashflows or borrowings. Miners who have been around have all been screwed by bankers in the past so will probably just wait for better days.


Sunfish - you wear a thong. I pegged you for a boxer shorts kind of guy.
 
Did you see the full page letter to the PM in the West from Atlas Irons MD?


Yeah, I went to the School of Mines with Flan. It's hard to picture him all serious, dressed in a suit and giving the PM what for over a tax issue by taking out a $ 15,000 spot in a newspaper.


The last time I saw Flanno, he was face down in a ditch in some seedy backstreet of Kal, with spew all over him. Ahhh....those were the days.


He was instrumental in hanging that dead maggoty roo in my room that they found as 3 week old roadkill. If I ever catch up with him, there'll be words had.
 
On one hand , why should such huge earners not pay a decent tax but on the other , they carry the country right now and 1000's of jobs.
But the whole scenario is just Australia being Australia, taxing us to the bone as usual, driving business away and just our Gov's & companies dreaming up new ways to get money out of us, what's new.
This is a really bloody stupid move though, miners will cop it when China dumps and so then so do we and at the same time they'll be copping new and absorbent taxes all in one, which will drive them away or under and so again we also cop it , which should all bring on the big one, highly possible.

But the really sad thing is nothing will be made here in another 20yrs it just won't be worth it.

Ta ta.
 
w0nnie,

thats the same clive palmer that is the biggest doner to the qld Liberal National Party, yes, definetly a unbiased view there

Also happens to be the same guy that appears to have just pulled the pin on Balmoral South.........this is seriously getting out of hand....:(

and why?????...........because he can I guess.

And as for RTIO........well everythings still in DES, nothing has been submitted for board approval as yet.........B4 Stage 2,RCE, Hope Downs 4.

ciao

Norwester
 
On one hand , why should such huge earners not pay a decent tax but on the other , they carry the country right now and 1000's of jobs.

And another hand the country carried them for 20 years.
Not that I agree with a tax for doing well or making more.
They could just remove or restructure the concessions.
But Commy Kev is just running out of straws to grasp, so a nice big headline like
"Those FRCs are making too much, we oughta take some more from them and give to all you big mass of pleb & loser voters" will bring in the votes.
 
Can I have a translation on that please?

RTIO Rio Tinto Iron Ore :D

Balmoral South I'm familiar with, as with the current Sino Iron Project for CPMM with MCC as the EPCM General Contractor

DEC :confused:

RCE :confused: I thought thats what they called you if you won lotto
 
Another irate Miner

The part in bold came up at work yesterday as a point of discussion


An irate Mr Forrest called a media conference in Brisbane on Wednesday to announce he was shelving two expansion projects worth billions of dollars because his debt finance options were drying up under the threat of the new tax.

The billionaire also claimed that Chinese companies may seek to exploit the tax by running projects at a loss and claiming a refund from Australian taxpayers under the new regime, in which the government will refund 40 per cent of losses.

"Even though that project is run at a loss, they're happy they've got the raw material," he said.

"At the end of that project, after they've mined everything, they can say it ran at a loss and charge you, the taxpayer, 40 per cent. That could be billions of dollars."


Some state-owned companies in Beijing this week have complained about the likely impact of the tax on their Australian investment projects, but it is widely assumed that Chinese investors will generally be undeterred by the prospect of lower returns.

And on the ground in the mining boom state of WA, there are signs that the rapid rate of Chinese investment is continuing.

 
Holy crap....

.... knowing what chinese business investment is like, if the above highlighted in bold is indeed possible - i would GUARANTEE that it will happen.
Successful Chinese businesses are ALWAYS looking for loopholes and ventures in which to sink their excess profits as "losses".

I dont like the sound of that at all.
 
Top