Following the restart of the Ernest Henry copper mine expansion last week, Xstrata yesterday announced it would resume $186 million worth of projects in Queensland in the wake of the Minerals Resource Rent Tax (MRRT) deal.
The projects include early works and exploration activities associated with the Rolleston West, Sarum and Wandoan coal projects, the company said.
According to the miner, the MRRT “represents significant progress towards a minerals taxation regime that will satisfy the industry’s core principles of prospectivity and maintaining international competitiveness.”
“In recent weeks Xstrata has participated in detailed and constructive discussions with the Government and believe there is now an improved shared understanding as to what drives mining investment decisions and the importance of a stable long term fiscal regime,” Xstrata Coal chief executive Peter Freyberg said.
“Today’s decision effectively lifts the suspension on expenditure announced by Xstrata last month and allows the next stage of planning for this internationally significant Wandoan project to proceed.”
According to the company, the $6 billion Wandoan mine and its associated infrastructure will create more than 3000 jobs during construction and operation over the next five years.
The mine is due to open in the second half of 2011.