Anglo Coal CEO warns against mining taxes

Anglo Coal chief executive Cynthia Carroll has warned against governments seeking excessive taxes if they want continued mining investment.

Speaking at mining industry dinner in London, Carroll said miners need to speak out over issues that harm development of the sector, Reuters reports.

“Governments tempted to move in this direction convince themselves that necessary mining investments in their countries will continue unabated, despite the imposition of such arbitrary changes,” she said.

“They are wrong. International businesses have choices to make between investment opportunities in different jurisdictions.”

As a result of the announcement of former prime minister Kevin Rudd’s Resource Super Profits Tax last year, Australia dropped severely in the global mining sovereign risk tables, drawing almost level with Papua New Guinea.

Carroll explained that miners would instead be looking to countries with “stable and fair fiscal regimes”.

She referred to Australia’s planned carbon tax, stating that it would place “unacceptable burdens” on the industry and harm the country’s image as an investment haven.

The Australian Senate has slammed the proposed tax in its report “Scrutiny of New Taxes”, which claims that it discriminates against a wide swathe of companies in the mining industry.

Australian opposition leader Tony Abbott echoed Carroll’s statements earlier this week.

Speaking at the Association of Mining and Exploration Companies Convention, he labelled the proposed carbon tax dangerous and claimed it put the industry under pressure.

“It won’t make a difference to the environment, but will hurt Australian workers and consumers,” he said.

“This carbon tax is based on lies.”

Abbott stated that “Chinese emissions are forecast to rise by 500% and India’s by 350% in the next decade, we in Australia could stop emitting altogether but China’s increase in emissions would more than make up for complete a stoppage in this country.”

However despite this calls from the industry and politicians, Gillard says she will not back down on the carbon and mining taxes.

She outlined her determination to pass the tax in its most current form.

“I’ll be delivering the minerals resource rent tax I shaped in my early days as Prime Minister,” Gillard stated earlier this week.”

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