Prime Minister Julia Gillard has rejected calls for a bailout of the aluminium industry. Resources and mining companies dominating the headlines this past week include Rio Tinto chiefs giving up their bonuses in response to a $US 8.9 billion earnings hit to the miner’s aluminium assets, BHP’s first half profit drops 5.5 per cent to $US 9.94 billion due to production constraints and lower commodity prices, Newcrest Mining posts a record first half net profit of $659 million and Leighton Holdings’ wholly owned subsidiary Thiess scores three major contracts.
FNN also speaks exclusively to past Liberal leader and current Shadow Minister for Communications and Broadband, Malcolm Turnbull, about why he is opposed to the Minerals Resource Rent Tax (MRRT).
Rio chiefs forgo bonusRio Tinto Limited
(ASX:RIO) chief executive Tom Albanese and chief financial officer Guy Elliott will give up their bonuses in response to a $US 8.9 billion earnings hit to the miner’s aluminium assets.
Chief executive Tom Albanese said, “As the acquisition of Alcan happened on my watch, I felt it only right not to be considered for an annual bonus this year”.
“We are working hard on improving the performance of our Aluminium business and during the year we completed a strategic review ... I firmly believe we are on track to secure our position as the lowest cost producer in the aluminium industry,” Mr Albanese added.
The impairment took the sheen off the 11 per cent rise in core earnings, reaching a record $US 15.5 billion for the year to December 31.
Resources NewsPrime Minister Julia Gillard has rejected calls for a bailout of the aluminium industry before the carbon tax comes into effect from July. Ms Gillard said aluminium producer Alcoa was not suffering because of carbon pricing, but because of structural changes and the high Australian dollar.
BHP first half results less than expectedBHP Billiton Limited’s
(ASX:BHP) first half profit dropped 5.5 per cent to $US 9.94 billion due to production constraints and lower commodity prices. It’s the first time in two years the miner has posted a profit fall. The results were slightly under expectations of $US 10 million. BHP affirmed its belief that long term demand for commodities will stay robust and declared an interim dividend of US 55 cents per share.
Newcrest’s record H1 profitNewcrest Mining Limited
(ASX:NCM) has posted a record first half net profit of $659 million, a 50 per cent increase on the previous corresponding period. Analysts had expected a profit of around $550 million. Sales revenue for the six months to December 31 rose 19 per cent to $2.3 billion. Higher gold and copper prices contributed to the earnings increase, offsetting cost pressures. The miner has increased its interim dividend by 20 per cent to 12 cents.
Leighton subsidiaries win contractsLeighton Holdings Limited’s
(ASX:LEI) wholly owned subsidiary Thiess has scored three major contracts in the past week. Contracts include a $180 million agreement with BHP Billiton Mitsubishi Alliance for the development of the Caval Ridge mine project in central Queensland. Thiess has also won a $325 million contract to construct gas processing facilities in Queensland. Additionally, the subsidiary also secured a $1 billion contract with OZ Minerals Limited
(ASX:OZL). John Holland, another wholly owned subsidiary has been awarded a $220 million contract for the construction of stage one works for the Wiggins Island Coal Export Terminal in Queensland.
Minerals Resource Rent TaxFNN spoke exclusively to past Liberal leader and current Shadow Minister for Communications and Broadband, Malcolm Turnbull, about why he is opposed to the Minerals Resource Rent Tax (MRRT). The Australian Taxation Office advises that the MRRT will apply to all new and existing iron ore and coal projects in Australia and will be applied at a rate of 30 per cent on the taxable profit of a project, from 1 July 2012.
Mr Turnbull believes the MRRT is not justified, claiming royalties are “very much within the jurisdiction of the states”.
“...The real question is, should the Federal Government be levying additional royalties over and above what the states are doing? And our response to that is no, that is not justified. If the states want to increase their royalties and they have done so, that is a matter for them,” Mr Turnbull says.
Mr Turnbull says the MRRT is “essentially unworkable” and the Coalition is committed to repealing the tax should they win the next election.
To watch more of the interview click here:
http://www.finnewsnetwork.com.au/archives/finance_news_network19793.html Melissa Beaumont Lee
