ESG

Industry ramps up anti-tax campaign

New website launched to educate people over mining contributions

MiningNews.Net

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It comes as WA Nationals leader Brendon Grylls proposes a $A7.2 billion mining tax on BHP and Rio’s iron ore production, and WA Premier Colin Barnett seeks to move from a production levy to an upfront payment.

The Chamber of Minerals and Energy WA and the Minerals Council of Australia have established the website, www.waironore.com.au, to “set the record straight” on the amount of taxes and royalties paid by the two biggest producers.

The groups said the two miners contributed $3.2 billion in royalties per year, as well as $259 million in taxes.

BHP and Rio have also purchased $80 million in local goods and services in the past five years.

The website will allow people to email their local members of Parliament to voice their concerns over the threat the new tax poses.

“It is crucial we all understand the consequences of the tax and the impact it will have on regional areas, as well as on a national scale when it impacts government payments and economic contributions,” the CME and MCA said.

“The proposed new iron ore mining tax should create concern for all WA residents, not just those that live and work in rural and remote areas.”

Yesterday Barnett said he had approached BHP and Rio with a plan to renegotiate the timing of payments by replacing the 25c per tonne levy with an upfront payment.

A spokesman for Rio Tinto said the company had been approached by the WA government to pay out its lease rental but was not planning to take up the offer.

“Rio Tinto is already making a significant contribution to the WA government,” he said.

“Since 2006 the company has paid $13 billion in royalties to the WA government – the equivalent of 10 new children’s hospitals.”

BHP was similarly unenthused.

“We can confirm the Premier’s statement that the WA government has discussed this idea with us,” a BHP spokesperson said.

“We can also confirm that BHP Billiton has not agreed to it and has no plans to do so.”

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