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BHP Highlights Flaw in Resources Super Profits Tax

By Joel ScanlonJun 10 2010

Making another attempt to hit out at the Resources Super Profits Tax in Australia, mining giant BHP Billiton sent out a letter to shareholders pointing out a supposed flaw in the law.

According to BHP chairman Jac Nasser the proposed 40% tax on the "super profits" will impact the mining industry adversely as the investment and financial characteristics of individual minerals are different.

Mr. Nasser wants the Australian government to redesign the proposed law to allow different tax rates according to the mineral resource being mined. Mr. Nasser wants this tax be based on the value of the mineral irrespective of the infrastructural processing and other supporting activities.

Doing this would not unintentionally penalize the mining industry as per Mr. Nasser. If the redesign is not possible, he would like to see the RSPT being abandoned. However Prime Minsiter Rudd is in no mood for a compromise after his discussions in Perth with miners.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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