Metalnewsnet 10 May ：

The world's biggest resources company says the federal government's proposed new tax on the industry will make it harder to approve new mining projects in Australia.

However BHP Billiton chief executive Marius Kloppers and West Australian iron ore producer Fortescue Metals Group are not yet committing to delaying or withdrawing investment in new projects.

The federal government's proposed 40 per cent tax on mining firms' so-called "super" profits from 2012 will "upset the apple cart", Mr Kloppers said.

"There will be an impact on investment, jobs and growth if the tax is implemented in an unchanged form," he told ABC TV.

BHP does not have any imminent decisions to be made on Australian investments, but the proposal could influence decisions on expanding the company's Australian operations, Mr Kloppers said.

"The uncertainty is in place, it would be very difficult to approve any of those projects," he said.

"But obviously we are not going to come out, particularly while it's very uncertain of exactly what will happen, to make blanket statements about things that effect livelihoods of communities, people, employees and so on."

Fortescue executive director Russell Scrimshaw said that company would shift its focus to projects outside Australia if the proposed tax is imposed.

"We do have offshore assets that we would certainly look at. New Zealand is one example," he told Sky News.

But asked whether Fortescue would stop mining Australian iron ore as a result of a rise in taxation, Mr Scrimshaw was non-committal.

"We're not saying that," he said.

"We're saying that we're going to review this when we see what the final cut of this tax looks like.

"At the moment it's all a little bit confusing, and I don't think there are too many people who clearly understand what it is going to look like."

Consultation will occur between the government and mining companies on the tax proposals, but Mr Kloppers said he does not expect major changes to be made.

The talks seem primarily aimed at "fleshing out the details rather than the principles of the process", he said.

BHP is opposed to the retrospective nature of the proposed new tax, and also wants taxation of the resources industry to be differentiated by product.

Meanwhile the Minerals Council of Australia has continued its public campaign against the proposed tax, commissioning a survey of institutional investors on its economic impacts.

Of the 21 senior portfolio managers and analysts interviewed by Radar Group, just under two thirds said the tax would have a significant impact on project investment in the Australian resources sector in the future.

A similar amount said it would also have a significant impact on institutional investment in the Australian resources sector, an issue illustrated when billions were wiped off the value of local resources shares in the days after the proposal was announced.

(from ninemsn)