Iron ore miner BC Iron Ltd
(ASX:BCI) says the development of the Nullagine Iron Ore Joint Venture with Fortescue Metals Group
(ASX:FMG) is on track despite the threat of the Resources Super Profits Tax.
In a statement this morning the company says both JV partners are aware of the uncertainty created by the proposed tax and have expressed their concern, but say the development timetable for Nullagine remains unchanged and on track.
BC Iron will commence mining at Nullagine in the Pilbara of Western Australia, later this year and remains on schedule to achieve the projects first shipment of ore in December 2010, a production rate of 3 million tonnes per annum and the shipment of 1 million tonnes by June 30, 2011.
The announcement comes after Fortescue yesterday advised that it was shelving the Solomon and Western Hub projects in WA due to the tax.
BC Iron says this decision by its 50/50 JV partner will have no affect on the development plans for Nullagine.
The company says it has strong views that the tax will have a negative impact on the resources industry, and its senior management are taking an active role in discussions and consultations between the industry and the government.
BC Iron posted a loss for fiscal 09, a wider loss than the year before.
