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Xstrata Reviewing Australian Projects on Tax Plan (Update1)
May 11,2010 10:39CST
industry news
Source:SMM

May 11 (Bloomberg) -- Xstrata Plc, the world's largest exporter of thermal coal, placed all its projects in Australia under review following the government's proposal to introduce a tax on mine profits.

"Until we know where the government is going with this proposed tax, all of our projects are under review," Brisbane- based Xstrata spokeswoman Melanie Edgar said today.

Xstrata, the fourth-largest copper producer, yesterday suspended its North Queensland regional exploration program for the metal because of the government's plan to introduce a 40 percent tax on mine profits starting 2012. BHP Billiton Ltd., the world's largest mining company, this week joined Rio Tinto Group in putting its projects under review, saying the tax may stymie investment and spur companies to move offshore.

"For Xstrata, it's across the board," Edgar said. "The Xstrata Copper announcement was just the first. We're reevaluating every other project that's on the board."
 

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