News Archive

Times of rapid fiscal policy changes

Just as we were going to print with an article analysing the impact of the proposed Resource Super Profit Tax (RSPT) on a small gold mine in Western Australia, this concept was abandoned by the Federal Government. Having reached agreement with the major mining companies in Australia, the Commonwealth Government announced on July 2, 2010 the introduction of a Mineral Resource Rent Tax (MRRT). This new tax is to apply as of 1 July 2012 at the rate of 30% exclusively to iron ore mines, and to no other commodity, when their annual profit exceeds $ 50 million. As a consequence the number of projects to which this tax will apply falls down to around 320 from an original total of about 2500 which would have been subjected to a possible RSPT.

A modified form of Petroleum Resource Rent Tax (PRRT) will apply to all coal mining and oil and gas projects both on-shore and off-shore.

Associate Professor Pietro Guj from the Centre for Exploration Targeting (a joint UWA/Curtin initiative) has interpreted the July 2 MRRT government press release, assessed its difference from the RSPT proposal, and analysed its impact on a small direct shipping ore (DSO) iron mine in Western Australia.

MINERAL_RESOURCE_RENT_TAX_IMPACT_ANALYSISv1 [RTF, 3.36 mb]
Updated 20 Jul 2010