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New report casts more doubt over the future of Tasmanian mining under Labor's tax



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Senator Stephen Parry Chief Opposition Whip in the Senate Manager of Opposition Business in the Senate Liberal, Tasmania

MEDIA RELEASE

Wednesday June 2, 2010

New report casts more doubt over the future of Tasmanian mining under Labor’s tax

SEVERAL Tasmanian mines may become “economically unviable” according to a new independent report on the Rudd Government’s mining tax, Senator Stephen Parry, speaking on behalf of the Tasmanian Liberal Senate Team, said today.

The KPMG report found that:

‘Using parameters under the RSPT (Resource Super Profits Tax) today scenario, the project financial modelling shows . . . nickel, copper and gold mines become economically unviable . . . relative to the status quo.’

Senator Parry said the modelling applied to new, or greenfields, mining developments but equally demonstrated that Labor’s mining tax will put a burden on the industry that could dry up investment and cost jobs.

“ The Henty gold mine, the Mt Lyell copper mine and the Beaconsfield gold mine are all major employers in Tasmania and, like all mining operations, they need ongoing investment to remain viable in the longer term,” he said.

“The KPMG report makes clear that Labor will put that investment, and therefore local jobs, in jeopardy, while also making new mining developments less likely.

“How can Tasmanian Labor MPs, including Sid Sidebottom, continue to turn their backs on the concerns of one of the most important industries in Tasmania?”

Senator Parry also questioned comments in the media today by Premier David Bartlett that he had received advice the mining industry in Tasmania was unlikely to feel a significant impact.

“I respectfully ask that Premier Bartlett release that advice.”

Ends

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