BHP Billiton Ltd
(ASX:BHP) chief Marius Kloppers says uncertainty created by the federal government’s planned resource profit tax could result in the stalling of its $20 billion Olympic Dam project.
Mr Kloppers says moving the tax rate from 44% to 57% or possibly more would make it very difficult to approve new mining projects in Queensland and Western Australia.
While he says it is too early to say whether the Olympic Dam copper, uranium and gold mine in South Australia will be shelved, Mr Kloppers says the impact of the proposed tax could upset expansion plans.
Consultation will occur between the government and mining companies on the tax proposals, but Mr Kloppers says he does not expect major changes to be made.
The global miner joins Rio Tinto in possibly putting projects on hold while it investigates the effects of the 40% tax.
If implemented in 2012, the new tax could reduce BHP’s earnings by 17%.
BHP Billiton posted a profit of $7.243 billion for fiscal 2009.
