Global miner BHP Billiton Ltd
(ASX:BHP) says the Federal Government should ditch its proposed mining tax and start from scratch, applying it differentially on various commodities.
According to a Fairfax report, BHP CEO Marius Kloppers says the mining profits tax has weakened investors and financier’s confidence established by ‘gold standard’ policies of previous governments.
The paper quotes Mr Kloppers saying that damage has already been done to that gold standard, describing the tax as deeply flawed.
The comments come after news yesterday that Swiss giant Xstrata has decided to suspend $586 million of spending on its Wandoan thermal coal project and the expansion of its Ernest Henry copper mine in QLD.
Aussie miner Fortescue Metals Group has also threatened to halt $15 billion of new projects unless changes are made to the Resources Super Profits Tax.
Prime Minster Kevin Rudd, is holding steadfast on the government’s argument for the tax, saying that Australians deserve a fairer share back of the resources of this country.
BHP’s fiscal 09 profit of $7.24 billion was less than half its result the year before.
