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Mining companies’ ridiculous claims about the impact of the Federal Government’s proposed Resources Super Profits Tax (RSPT) are finally coming under proper scrutiny.

This article in today’s Fairfax press exposes Xstrata’s form in lying and bullying to protect its profits.

Earlier this month Xstrata grabbed headlines with the spurious claim 3,250 jobs were being lost as it shelved the Wandoan thermal gas project in Central Queensland, with another 60 jobs lost from shelving the expansion of the Ernest Henry copper project.

But mining services contractor Industrea announced it had won a $3.4 million contract from the Anglo-Swiss miner on the Ernest Henry site on the same day and Xstrata continues to buy up farmland in the 32,000 hectare Wandoan exploration area.

The claim by mining companies that their high profits are always in the national interest is another whopper.

Xstrata demonstrated this when it controversially shut its Windimurra vanadium operation in Western Australia in 2004 leading to widespread job losses – but significantly boosting the value of its South African vanadium business.

As Tony Maher points out, the mining companies have frequently claimed the sky would fall in, whether over climate change action or land rights.

Miners like Xstrata have to be kept accountable for the claims they make.



 

2 comments on " Lying, bullying: Xstrata has form "

Haz. said on Fri, 25/06/2010 - 07:45:
Howards has beens. All expert in back stabbing. Rather than waste time and money formulating policies which might attract voters at the next election, launch a ferocious and immediate attack on Julia Gillard. That should get them an extre vote or ONE?
Haz. said on Thu, 24/06/2010 - 08:30:
http://www.news.com.au/business/imf-official-gives-mine-tax-thumbs-up/st... official gives mine tax thumbs up By Rachel Hewitt From: Herald Sun June 24, 2010 12:00AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these? IMF staffer welcomes mining tax in principle Leaves substantial share in private hands BHP launches attack ads with cyclist A SENIOR IMF official said the resources super profits tax did not "show adverse effects on Australia's economic prospects". Philip Daniel, speaking at a conference in Sydney, said IMF staff welcomed the RSPT proposal in principle. "It shifts the whole Australian resource tax system strongly in the direction of neutrality," Mr Daniel said. "It offers strengthening of Australian public finances over the long term, reduces risk of absolute loss for investors, while leaving a substantial share of resources profits in private hands." Mr Daniel, who emphasised he was expressing his personal views, not the IMF's, said he arrived in Australia at the weekend and the three big issues that seemed to be dominating the tax debate were its application to existing projects, sovereign risk and the rate of tax. Start of sidebar. Skip to end of sidebar. End of sidebar. Return to start of sidebar. "I would suggest that simply looking at headline tax rates is misleading without considering the structure of the tax," he said. "In any case, the argument that the headline rate is exceptional doesn't really stand up - it does not take account of the combined effect of multiple levies in other countries, including concessional state participation schemes that exist in many places." On the issue of sovereign risk, Mr Daniel said he accepted the Henry report case that the structure of the tax makes future change much less likely than it is for royalties. "The new tax is designed to be responsive to changed circumstances, and its impact is known and certain for companies in advance, whereas royalties are not responsive and more vulnerable to unexpected change." BHP Billiton last night launched its first television ads attacking the new regime. BHP features Olympic cyclist Anna Meares - who, along with sister Kerrie, has been sponsored by the miner since 2007. From a mining family in Middlemount, Queensland, Ms Meares appears in the ad saying "When you go up against the best in the world you need everything possible working for you; that's why I don't get our government wanting to make Australian mining the most highly taxed by far in the world".