Rio Scraps Multi Million Dollar Expansion
Rio Scraps Multi Million Dollar Expansion – Rio Tinto has raised the stakes in the mining industry’s fight with Kevin Rudd over his new super tax by shelving its $11 billion expansion plans in Western Australia.
In a fresh blow to the Prime Minister’s tax reform plans, the mining giant said it would withdraw its plans for expanding its massive iron ore operations in WA because of the uncertainty sparked by the proposed tax on super profits, The Australian reported.
As Mr Rudd faced down industry executives in Perth for a second day yesterday, it also emerged that fellow miner BHP Billiton was reassessing the viability of its iron ore and coal projects in New South Wales, Queensland and Western Australia.
And Origin Energy said the proposed 40 per cent “resource super-profit tax” would push up “retail energy prices” by making gas and coal to drive power plants more expensive.
Tags: Bhp Billiton, Coal Projects, Dollar Expansion, Energy Prices, Expansion Plans, Industry Executives, Iron Ore, kevin rudd, Massive Iron, Mining Industry, New South Wales, Origin Energy, Power Plants, Profit Tax, Retail Energy, rio tinto, Scraps, Tax Reform, Viability, Western Australia
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