Miners left hanging on tax level
WA's miners face at least a two-month wait to learn whether their pleas for the Federal Government's mining tax to be made more industry-friendly will be heard after negotiations with the committee in charge of finetuning the tax kicked off in Perth yesterday.
Resources Minister Martin Ferguson described the first day of formal tax talks as "straightforward", saying he believed the industry was coming around to the idea that a tax was inevitable and was focused on getting the details right.
"I think the industry is now focused on the fact that the Government is clear in its intent to put this tax in place," he said.
Significantly, Mr Ferguson also suggested that the $50 million threshold at which the tax kicks in was not set in stone - news that could prove a major win for junior miners who argue it is too low.
The Minister said the issue had been raised and would be discussed "in due course with the Treasurer".
Chamber of Minerals and Energy director Damian Callachor said the group had raised concerns about the tax-free threshold. It also continued to push for magnetite to be excluded from the tax because of the additional processing it required.
"We are competing with other global provinces for investment and it's important the final (tax) does not compromise our sector's ability to compete on the international stage," Mr Callachor said.
Association of Mining and Exploration Companies chief executive Simon Bennison said the talks were "amicable" but that a lot of work remained to be done.
The mining tax policy transition group, jointly headed by Mr Ferguson and former BHP Billiton chairman Don Argus, is in town for two days of talks with junior miners who argue the mineral resources rent tax favours the three mining heavyweights that agreed to it in the first place: BHP, Rio Tinto and Xstrata.
The talks mark the first leg of a national tour that will see the Government's transition group visit miners in other capital cities. It remains unclear if the group will return to Perth for a second round of meetings.
Two of the tax's most outspoken critics, Fortescue Metals Group chief executive Andrew Forrest and Atlas Iron boss David Flanagan, did not take part in the discussions. Yesterday's talks were for iron ore miners, with today earmarked for oil and gas.
Separately yesterday Treasurer Wayne Swan continued to defend the decision not to release the assumptions underpinning the Government's forecasts that the tax would raise about $10.5 billion in the first two years from 2012.
Mr Swan said Treasury had never published detailed information about individual commodities and it would be "grossly irresponsible" to do so.
