London Mining Networktax | London Mining Network

Australia’s mining reforms have gone distinctly “down under”

Richard — Wed, 23 May 2012 16:36:53 +0000

The Labor-held federal Australian government recently presented its much-awaited 2012 budget. And what a mess of potage it turns out to be! According to Rob Burgess of the Business Spectator, the country’s mining sector “currently accounts for 30 per cent of ‘gross operating surplus’ – its basic approximation of who’s making all the money in this country.” Miners pay only 15 per cent of company tax at present, and they were expecting a further cut in the tax, ostensibly to promote more jobs. But this hasn’t materialised. For the cut was “to come out of the revenue that the government speculates can be raised from the minerals resource rent tax [MRRT].” Now, it seems, the MRRT itself has just about bombed. This affects, among others, Anglo American, BHP Billiton, Rio Tinto and Xstrata.

See http://www.minesandcommunities.org/article.php?a=11692.

Glencore threatens to pull out of countries that want too much

Richard — Fri, 11 May 2012 17:04:03 +0000

Glencore CEO Ivan Glasenberg told a conference in Switzerland that mining companies will fight resource nationalism by pulling out of countries where they feel demands are too onerous.

See http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=150864&sn=Detail&pid=92730.

Indonesia tries keeping its minerals at home

Richard — Thu, 12 Apr 2012 14:52:09 +0000

Indonesia is considering imposing a hefty tax on mineral exports to curb over-exploitation of the country’s resources, as companies scramble to beat a 2014 law requiring ores be upgraded on-shore. It’s a rational follow-up to the government’s quasi-nationalisation of the mining industry, announced earlier this year. It would affect London-listed mining companies BHP Billiton, Bumi, Churchill and Rio Tinto, among others.

See http://www.minesandcommunities.org/article.php?a=11611.

Australia passes controversial mining tax into law

michaela — Wed, 21 Mar 2012 21:14:17 +0000

The Australian Senate has pushed through into law a 30% tax on iron ore and coal mining companies. The tax will raise A$10.6bn ($11.2bn, £7bn) over three years from major companies including BHP Billiton, Rio Tinto and Xstrata.

See http://www.bbc.co.uk/news/business-17441170.

See also: Court threats loom as Australia’s mining tax passed http://www.google.com/hostednews/afp/article/ALeqM5hymTU1FJTqrQfMtQ0z2PXP2IzOygdocId=CNG.9fd2e1098c02c3cc04099ac8d7f2e9e9.11.

Phulbari project criticised in submission to Parliamentary inquiry

michaela — Fri, 02 Mar 2012 22:07:56 +0000

Written evidence submitted by London Mining Network and International Accountability Project to an inquiry by the Parliamentary International Development Committee (‘Tax in Developing Countries: Increasing Resources for Development’) concerns a proposed mining project in northwest Bangladesh, the Phulbari Coal Project. The project has generated fierce controversy over the past six years. Project opponents cite a 6% royalty rate and a nine-year tax “holiday,” both of which violate national mining rules, as serious concerns. Both would constrain development revenues in one of the world’s most economically poor countries while allowing a UK-based corporation, GCM Resources plc, to extract one of Bangladesh’s most valuable non-renewable resources.

Contract terms also allow the export of 100% of the coal, which means that Bangladesh’s finite coal resources would not be used to meet the country’s own unmet energy needs. In addition to a royalty rate and tax exemption that violate Bangladesh’s mining regulations and would sharply constrain revenues desperately needed for development, the project would inflict severe costs that include adverse impacts on the nation’s food supply, access to water, health and the environment, which would affect as many as 220,000 Bangladeshi citizens. In so doing, the project threatens to reverse Bangladesh’s progress toward meeting Millennium Development Goals (MDGs), and undermine DfiD’s spending and core work in support of the specific goals of reducing hunger and extreme poverty, increasing access to water, improving health, and building livelihoods.

See http://www.publications.parliament.uk/pa/cm201012/cmselect/cmintdev/writev/1821/tax03.htm.

Campaigners demand law urging mining companies to open up their books

michaela — Tue, 21 Feb 2012 22:32:36 +0000

Campaigners from anti-poverty groups CAFOD, Tearfund and ONE today sent an early Valentine’s Day message to newly appointed minister Norman Lamb by carrying a giant love heart with the message ‘love truth’ to the Department for Business, Innovation and Skills. The groups, part of the Publish What You Pay Coalition, are raising awareness of a new law that would force oil, gas and mining companies to tell the truth about payments they make to governments of poor countries in return for their natural resources.

See http://www.indcatholicnews.com/news.php?viewStory=19827.

Zambia: mining companies should cough up more!

michaela — Wed, 15 Feb 2012 22:38:23 +0000

The Zambian government says it’s no intention of nationalising the mining industry – a position adopted last week by South Africa’s own ruling party. However, Zambia intends to increase its stake in mining companies by 15% and recover taxes the companies haven’t paid – which might come to as much as US$1 billion. Among London-listed mining companies active in Zambia are Glencore and Vedanta.

See http://www.minesandcommunities.org/article.php?a=11486&l=1.

Glencore faces questions over controversial DRC mine sales

Richard — Fri, 10 Feb 2012 12:14:59 +0000

Moves by unknown shell companies to control lucrative natural resources may have cost Democratic Republic of Congo $1 billion in lost revenue, as UK-listed mining company Glencore comes under pressure to explain deals. See http://www.theecologist.org/News/news_analysis/1235793/glencore_faces_questions_over_controversial_drc_mine_sales.html…
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Glencore faces legal action over pollution caused by Zambian copper

Richard — Tue, 24 Jan 2012 19:01:07 +0000

Glencore is facing legal action over pollution caused by its vast and lucrative copper operations in Zambia. Glencore’s Mopani Copper Mines subsidiary has been a thorn in the firm’s side since its £6billion float in May last year, throwing up allegations of environmental recklessness and tax avoidance, which the company denies. The Swiss-based firm could find itself dragged through the courts after Zambian campaign group the Centre for Trade Policy and Development demanded the company explain itself or face a lawsuit.

See http://www.minesandcommunities.org/article.php?a=11440&l=1.

Ghana to hike taxes on mining companies

Richard — Sat, 26 Nov 2011 18:16:25 +0000

Ghana will seek to boost revenues from its mining industry next year by hiking taxes, according to a text of the 2012 budget delivered to parliament recently. The corporate tax rate on miners will increase to 35 percent from 25 percent and a separate 10 percent tax on windfall profits will be introduced, according to the text.

Firms operating in Ghana include subsidiaries of Newmont Gold, London-listed AngloGold Ashanti and South Africa-based Goldfields.

See http://af.reuters.com/article/investingNews/idAFJOE7AF06Z20111116.

Australia Passes Landmark Carbon Price Laws

Richard — Tue, 15 Nov 2011 17:07:48 +0000

Australia passed landmark laws last week to impose a price on carbon emissions in one of the biggest economic reforms in a decade and injecting new impetus into December’s global climate talks in South Africa.

Among London-listed mining companies affected are Anglo American, BHP Billiton, Rio Tinto and Xstrata.

See http://www.reuters.com/article/2011/11/08/us-australia-carbon-idUSTRE7A60PO20111108.

Anglo American may pull investments, jobs

Richard — Thu, 10 Nov 2011 16:01:31 +0000

In a move intended to pressure the Australian federal government to revise the proposed carbon tax, global miner Anglo American has threatened to withhold over $15 billion in coal mining investments and curtail 3,200 new jobs in Australia, according to a report by the Australian Financial Review.

See http://www.businessspectator.com.au/bs.nsf/Article/Anglo-American-may-pull-investments-jobs-pd20111101-N7Q4J?opendocument&src=rss.

Dutch masters of tax avoidance

Richard — Wed, 26 Oct 2011 12:31:01 +0000

A recent report by Publish What You Pay singled out Norway as a favoured European “secrecy jurisdiction” for extractive industry corporates, but the Netherlands isn’t far behind. Schiphol airport is home to AA Holdings Argentina BV, part of Anglo American plc, while Lelystad airport is said to be “clearly the natural home of Rio Tinto’s Mali Diamond Exploration BV” (though this is “now believed” to be dormant).

See http://www.guardian.co.uk/business/2011/oct/19/tax-avoidance-in-netherlands-becomes-focus-of-campaigners.

Copper miners in Zambia fearful of ‘King Cobra’

Richard — Sat, 08 Oct 2011 09:41:13 +0000

The election of Michael Sata to president of Zambia is not sitting well with copper miners who fear the 73-year-old, known as “King Cobra” for his aggressive style, will pick the pockets of mining companies, Bloomberg reports.

Among the foreign companies with copper interests in Zambia are Vancouver-based First Quantum Minerals; Glencore International Plc; London-based Vedanta Resources Plc; and Barrick Gold, which owns Lumwana Mine, Africa’s largest copper mine, through its acquisition earlier this year of Equinox Minerals Ltd.

See http://www.mining.com/2011/09/23/copper-miners-in-zambia-fearful-of-king-cobra/.

Guinea Passes New Mining Code

Richard — Sat, 08 Oct 2011 09:39:12 +0000

New legislation promises to maximise revenues and tighten regulation.

Guinea’s new mining code, passed on September 9, promises to maximise the public revenues generated by foreign deposits and impose stricter regulations upon mining companies operating in the country. The management of the country’s mining practices has been in dire need of reform for some time. Although Guinea possesses half of the world’s supply of bauxite – the main source of aluminium – it remains one of the world’s poorest countries, with 47% of its population living on less than $1 per day.

Among the mining companies active in the country is Rio Tinto.

See http://thinkafricapress.com/guinea/new-mining-code