Rio and Xstrata start Australian expansion after mining tax deal
MINING giants have resumed expansion plans in Australia following a deal with the government over a new profits tax.
Xstrata resumed A$186m (£104m) of exploratory work in Queensland yesterday, lifting a spending ban that stood during negotiations over the levy, which will now charge miners 30 per cent on some operations.
The head of Rio Tinto’s iron ore division Sam Walsh said yesterday the firm is reopening its study into expanding operations at Pilbara in Western Australia.
“We needed to resolve this subject to get on with life,” said Walsh.
Meanwhile, BHP Billiton sent a letter to shareholders saying the levy deal was encouraging, and that former BHP chairman Don Argus will co-chair a policy transition group.