SA Mining boom gone bust before it has begun

The Rudd Government's great big new mining tax has placed the South Australian mining boom in jeopardy with Oz Minerals today announcing that the Prominent Hill mine expansion is on hold, according to Christopher Pyne, Federal Member for Sturt.

"Yesterday the Chief Executive of BHP Billiton, Marius Kloppers, was reported confirming that any expansion of the Olympic Dam project would be frozen," Mr Pyne said.

"Similarly Andrew Forrest, Chief Executive of Fortescue Metals announced $18 billion worth of future investments were under review," he said.

Now another major South Australian mining project has been put on hold. This is a very serious problem for South Australia.

The Rudd Government's great big new mining tax has created a climate that could result in lost jobs and growth for South Australia. Our boom will be bust before it has begun.

Further industry warnings are emerging that Australian mining assets will be vulnerable to Chinese Government backed buy-outs under the Labor tax regime.

Andrew Forrest said yesterday that he already had approaches from overseas companies to buy Australian assets. Mr Forrest has confirmed that he would have to sell if the Rudd Government's great big new mining tax kicks in.

The mining industry has carried Australia through the Asian financial crisis and the global financial crisis. It employs directly and indirectly hundreds of thousands of Australians. It contributes billions and billions of dollars already to the Australian economy through company tax and royalties.

Why should the mining industry have to bail out Labor's $94 billion debt and $57.1 billion deficit?

"The Coalition will oppose Labor's great big new mining tax, ensuring Australian mining stays in Australian hands," Mr Pyne said.

May 20, 2010

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