Tuesday 25 October 2016

Australia Repeals Mining Tax, Adani Pleased

Natasha Chaku/ Melbourne

Indian conglomerate Adani Mining today welcomed Australia's move to repeal a contested mining profits tax, saying it showed the government's strong commitment towards supporting export opportunities in the resources sector.

The repeal of the Minerals Resource Rent Tax (MRRT) or mining tax this week underlines the cost-effectiveness of the Carmichael mine, according to Adani's official statement here.

Adani said that it was pleased to invest in Australia prior to the carbon tax and mining tax being legislated, their repeal makes investment in the sector more attractive to foreign investors, helping build confidence in projects like Adani's integrated mine, rail and port project which will deliver more than 10,000 jobs and 22 billion dollars in taxes and royalties in Queensland.

On Tuesday, Prime Minister Tony Abbott announced that he had struck a deal with six crossbenchers, including Palmer United Party senators, to repeal the MRRT.

While the repeal legislation was passed 36 votes to 33, it as amended still needed to be given the nod in House of Representatives.

Abbott had said that the tax was possibly the most stupid tax ever devised.

It further noted the positive impact this has on the ability of the company to deliver cost-effective and high quality coal to the Indian market in the years ahead.

While the approval process for the rail component of the project remains on foot, Adani looks forward to a long term future with Australia, the group said.

"It comes at a time Prime Minister Abbott visits India in the first visit of a world leader to be hosted by Prime Minister Modi, and as both countries look to deepen bilateral ties," it further said.

"The Australian government's moves to support investment in export industries that will help deliver energy security in India is a tangible demonstration of this deepening friendship."

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