OneSteel
(ASX:OST) is the latest mining and steel-making business to launch an attack at the Federal Government’s proposed Resources Super Profits Tax.
OneSteel Chairman Peter Smedley says as it stands, the proposed tax would have a major and immediate impact on its competitiveness in New South Wales and South Australia.
In a letter to shareholders released last night, Mr Smedley said the tax would have "serious implications" for the company, its shareholders and the communities in which it operates, and shouldn't apply to resources consumed internally.
In particular, Mr Smedley warned the tax would fundamentally change the economics of its Whyalla steelworks in South Australia and threatens the viability, and longevity of its business.
OneSteel’s comments come after broker Credit Suisse said the Whyalla steel works, faced closure unless the tax was changed to exempt it from a 40% tax on the market price of magnetite iron ore.
OneSteel’s 2009 net profit was $229 million.
