Treasury struggled with mining tax forecasts
The Australian has reported that Treasury Secretary Martin Parkinson told a Senate estimates committee yesterday that his department was caught out on forecasts of the Minerals Resource Rent Tax.
He said his department was unable to accurately forecast the revenue stream for the levy, especially since resource companies had no obligation to inform Treasury of the value of their operations or profits.
“When those components of the mining industry talked with us there was no legal obligation on them to have actually settled on the starting base,” Parkinson said.
“They actually had the opportunity to go back and think about what their starting base should be.
“They gave us their best estimate, as we understand it, their best estimate at the time, but they clearly had until the point they are legally obligated for the tax the opportunity to re-think that.”
New Rio boss douses hopes of Rinehart tie-ups
The Age reports that Gina Rinehart's wish for Rio Tinto to quickly approve further joint ventures with Hancock Prospecting appears unlikely to be granted any time soon, judging by comments from Rio's new chief executive Sam Walsh yesterday.
Walsh indicated that an expansion of Rio's highly successful iron ore joint-venture with Hancock was not a priority, despite Rinehart suggesting upon his appointment that three new mines in the Hope Downs precinct were "convenient for early development" and should be committed to in a "timely manner".
The two companies have jointly developed three mines at Hope Downs in the Pilbara, but Mr Walsh said more work to prove up deposits would be needed before any new mines could be commissioned there.
"Going forward, we have works underway in terms of development, the drilling work and other work before you can make any decisions ... we are not at 'order of magnitude' or 'prefeasibility study' yet with those projects," he said.
South Africa to review mining taxes
South African President Jacob Zuma says mining taxes will be reviewed in a move likely to renew uncertainty in the key sector hit by deadly strikes and nationalisation threats, according to the Australian Financial Review, citing an AAP report.
"Later this year, the minister of finance will be commissioning a study of our current tax policies, to make sure that we have an appropriate revenue base to support public spending," Zuma told the opening of parliament on Thursday.
"Part of this study will evaluate the current mining royalties regime, with regard to its ability to suitably serve our people."
It comes after Minister for Mines Susan Shabangu told Investing in African Mining Indaba last week that there was no chance of nationalisation of the industry.
