Australian mining companies are applying the blowtorch to the federal government over its proposed tax changes, announcing a host of projects may not go ahead.
Santos Ltd on Wednesday warned its $7.7 billion Gladstone liquefied natural gas (GLNG) joint venture project was under a cloud due to the proposed Resources Super Profits Tax (RSPT).
A 40 per cent new tax would be applied to so-called super profits of resources companies. It's expected to reap $12 billion in its first two years of operation, under government plans.
Iron ore heavyweight Fortescue Metals Group Ltd also attacked the proposed tax on Wednesday, saying it may sell projects put on hold to foreign firms and already has two expressions of interest.
BHP Billiton Ltd chief Marius Kloppers told the Australian Financial Review that investments slated for major projects in Australia could go offshore.
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OZ Minerals added to pressure, warning investors at its annual general meeting in Adelaide that it cannot conclude a study for a new underground project due to uncertainty regarding the RSPT.
Queensland billionaire Clive Palmer, who has said he's been forced to shelve two major mining projects, in Western Australia and South Australia, issued a media release on Wednesday accusing unions of failing workers through their support for the tax.
"Unions are supposed to have the best interest of their workers at heart, so it staggers me that they are supporting legislation that will lead to a massive number of their own members' jobs being taken offshore," he said.
Santos says it needs more information on the tax plans before it makes a final investment decision on the GLNG project, which is expected to employ 5,000 workers during construction
. "I have also said that we will take a final investment decision this year," Mr Knox told the Australian Petroleum Production & Exploration Association (APPEA) conference in Brisbane.
"To enable that, it will be important that we get greater clarity on the tax regime we can expect going forward," he said.
Australian Treasurer Wayne Swan says he's unsurprised that mining firms are reassessing projects in light of the tax.
"It is hardly surprising that people would be looking at their projects in light of the government's announcement," Mr Swan told reporters in Sydney.
