Davis slams Fed govt at Mangoola opening

XSTRATA global chief executive Mick Davis has criticised the Commonwealth government’s record in making Australia an attractive place to invest as he opened the $A1 billion Mangoola coal mine.
Davis slams Fed govt at Mangoola opening Davis slams Fed govt at Mangoola opening Davis slams Fed govt at Mangoola opening Davis slams Fed govt at Mangoola opening Davis slams Fed govt at Mangoola opening

Mick Davis

Lou Caruana

He said Xstrata had invested around $60 billion into Australia since 2002, with Mangoola set to produce 8 million tonnes of coal and contribute $324 million to the New South Wales economy each year.

“We have been concerned about some of the legislative and tax changes that have occurred in this country over the past 18 months,” he said.

“They will affect the mining industry and I believe will make Australia a less attractive investment destination for foreign inward investment in the future, particularly by multinational companies with a range of growth options across many different countries in which they can choose to invest.

“Mining investors need an equitable and stable regulatory environment with a transparent and consultative approach to any amendments to the fiscal regime.

“Australia has historically been one of the world’s leading destinations for mining investment based on the significant skills available in this country and a regulatory and fiscal regime that has facilitated long-term multibillion dollar investments, while garnering a significant contribution from the sector to underpin Australia’s prosperity.”

Davis said the mining industry could continue to be an “important driver of Australia’s prosperity and we will continue to engage with the government to work our way through these challenges”

He said throughout the financial crisis, Xstrata maintained its investment in early stage works and infrastructure developments at the thermal coal mine, and picked up development and construction as soon as it could when markets improved.

“Mangoola joins a high-performing division within Xstrata Coal, which plays an important role in the overall success of the Xstrata Group,” he said.

Xstrata Coal chief executive Peter Freyberg said Mangoola is the latest in a track record of Xstrata Coal investments in NSW.

“Within the first year of operations, the mine is already achieving some of the best operating performance rates in the industry,” he said.

“In just four years, we have taken a blank slate and delivered a mine under budget and ahead of schedule that exceeds world best practice in productivity and safety. Within six months of commissioning, Mangoola has established a reputation as an important and reliable supplier to meet increasing domestic and global seaborne thermal coal demand.”