Palmer takes knife to suppliers

Amid plunging commodity prices, billionaire and political aspirant Clive Palmer's Queensland nickel refinery has "invited" its suppliers to share the pain by reducing their prices by 15%, according to The Australian.

In a gambit similar to that of the supermarkets, Queensland Nickel has unveiled a "competitive tender" for all non-contracted goods and services valued at more than $5000.

States move to ease pressure on power bills

Queensland and NSW have promised to curb spending on electricity poles and wires to help reduce household power bills, according to the Australian Financial Review.

While conservative states continued to bristle at Prime Minister Julia Gillard’s claims they are to blame for soaring power prices, Queensland Energy Minister Mark McArdle said he was considering trimming back capital expenditure and receiving reduced dividends from their network companies as part of a power reform package.

“I am considering it at this point in time,” McArdle said. “There are implications obviously for dividends through to the state but it’s also a very clear lever as to what we could use regards to putting down prices.”

The Newman government has already frozen electricity prices for the average household this financial year, at a cost of $60 million.

Unearthing finance to get harder

The head of the world’s third largest gold miner, AngloGold Ashanti, sees the financing market for mining companies, particularly juniors, becoming even tougher in the next 12 to 18 months because of global economic volatility, according to the AFR.

“The thing we’ve noticed is a lot more juniors coming to us for help and we’re seeing that right across the board,” AngloGold chief executive Mark Cutifani said yesterday at the Diggers and Dealers conference in Kalgoorlie.

“I think it will be a tough market in the next 12 months.”

His view influenced the company’s decision to refinance its $US1 billion revolving credit facility and issue a $US750 million 10-year rated bond during the June quarter.

Corporate tax cuts to 28% in government blueprint

Company tax would be cut to 28c in the dollar in a bid to lift productivity and increase wages under a landmark federal plan to be released next week, reigniting debate on major economic reform, according to The Australian.

The government's business tax working group will set the target in a long-term blueprint to ease burdens on business and lure more foreign capital at a cost of at least $3.6 billion a year.