Global miner BHP Billiton Ltd
(ASX:BHP) CEO Marius Kloppers has reportedly said he sees no end in sight to the raging dispute over the Federal Government’s proposed Resources Super Profits Tax.
The comments made to the Sydney Morning Herald seem to go against recent speculation that the Federal Government is willing to make a compromise with miners on the tax.
The proposed mining profits tax is aimed at better aligning the way resource companies are taxed with the petroleum rent resources tax that applies to offshore oil and gas projects.
Prime Minister Kevin Rudd has been in negotiations with major mining bosses like Andrew Forest of Fortescue Metals and Mr Kloppers, but so far it appears he is unwilling to budge on the Government’s stance on the tax.
Miners believe different commodities should have different tax rates to keep them internationally competitive and are opposed to the tax being applied to already existing projects.
According to the Herald report, Mr Kloppers says he is always hopeful that sense prevails, but as yet has not seen how sense will prevail this time.
BHP’s profit for fiscal 09 was less than half its result the year before.
