Unintended Consequences--Xstrata puts 586 million Australia dollars Australia investment on hold because of tax

摘要

Diversified miner Xstrata has suspended 586-million Australia dollars of expenditure to develop two Australian projects because of the country's proposed tax on 'super profits', CEO Mick Davis announced last week. The two affected projects are the 6-billion Australia dollars Wandoan thermal coal project and a 600-million Australia dollars project to extend the life of the Ernest Henry copper mine, both of which are in Queensland. Early works were scheduled to start in July this year, but will now be suspended with immediate effect.