International: 'Super profits tax' worries miners

International: 'Super profits tax' worries miners

Nearly £12 billion was written off the value of mining company shares The Times reported after the Australian Government announced plans to impose a 'resources super profits tax'. Analysts warned that the new tax would 'erode future profits cutting the dividends that the London-listed companies paid to UK pension funds'.

'Taxing 40% of profits over the long-term bond rate together with corporation tax would make the Australian minerals sector the highest taxed in the world seriously eroding competitiveness ' said David Peever a director of London-based Rio Tinto.

BHP Billiton said the new tax would increase the total effective tax rate on the group's profits from Australian operations from 43% to 57% from 2013. 'Multi-billion dollar long-term investments in the Australian resources sector have contributed significantly to the prosperity of all Australians ' the company said....