Metalnewsnet 7 May:

Rio Tinto has not yet decided on whether or not it will shelve any development projects following the Australian government's proposal to impose a 40% federal tax on the resources industry, it said on Thursday. "No decision has been made to shelve any projects in Australia following the announcement of the federal government of a proposed resource super profits tax (RSPT)," Rio said.   "Rio Tinto is reviewing the potential impact of the proposed RSPT on all of its operations and new projects in Australia," it added. While all its Australian operations are under review, the feasibility study into the proposed 330 million tpy iron ore expansion in Western Australia is continuing, it said.

"Rio Tinto is, however, unable to determine the impact of any RSPT on the 330 million tpy expansion study until the details of the government's proposal become clearer," it said. The company's shares rose slightly on Thursday morning, moving up by 0.28% to £31.97 ($48.20) per share by 10:53 BST on the news. Miners across Australia reacted with alarm after last week's announcement of the Henry tax - named after treasury secretary Ken Henry - which is meant to replace state royalties. The tax review report said the existing royalty structure did not reflect the "increasing profitability in the resource sector".

"A uniform resource rent tax should be set at a rate of 40%," it said, adding that "the Australian and state governments should negotiate an appropriate inter-governmental allocation of the revenues and risks from the resource rent tax". Mining companies including Rio Tinto, BHP Billiton and Xstrata sustained heavy losses to their share prices after the news was announced. Rio Tinto's shares were trading at above £40 per share this time a month ago.