Queensland seeks to enforce work on Abbot Point
The Queensland government is considering forcing companies that win contracts to expand Abbot Point coal terminal to build their facilities as soon as possible or potentially lose their development rights, according to the Australian Financial Review.
After scrapping the $9 billion expansion of the crucial coal export hub last year, the Liberal National Party government has become increasingly frustrated at the slow pace of work on terminals that were approved for upgrades by the former Labor government.
Companies involved include mining giant BHP Billiton, which won the right to develop T2, but has yet to do so.
Energy and resources boards told it’s time to repay shareholders
Anton Tagliaferro has a message for board members in the energy and resources sector: it’s time to reward shareholders and put the brakes on spending, according to the Australian Financial Review.
The founder of Investors Mutual, one of Australia’s most successful boutiques, believes that industrial stocks have set a great precedent for capital management in this market, but the laggards need to share some of the spoils.
“There is this mindset of growth, as opposed to rewarding shareholders with dividends,” he says of mining and energy stocks.
“They seem to still go for growth for growth’s sake in many ways, which is disappointing ... at some point companies like BHP and Rio and Woodside you would think would try and run their company to really benefit shareholders in terms of dividends. It always seems to be coming.”
Rio’s $12B offset to hit MRRT take
Mining giant Rio Tinto is sitting on $US12.6 billion of tax assets that it could dip into to use against future mining tax bills, in a further blow to the federal government as it bleeds expected revenue from the ill-fated tax, according to the Australian Financial Review.
Rio released its report on taxes paid for the 2012 financial year on Friday night, revealing the extent of the asset for the first time.
The asset, based on resources in the ground when the mining tax was first tabled by Treasurer Wayne Swan in May 2010, far exceed the publicly known figures to date.
Rio’s latest accounts showed that it booked a $US1.1 billion tax asset in the year to December 31.
