Xstrata recommits to spend A$186m in 3 Qld projects

XSTRATA has recommitted to spend A$186 million (K450 million) on its three projects in Queensland which it temporarily shelved after the former Rudd government tried to initiate the resources super profits tax (RSPT).
Xstrata is the major joint operator of the Frieda project in West Sepik.
The Anglo-Swiss miner, which has 81.82% stake in Frieda copper project, said it would recommence Queensland growth initiatives that included early works and exploration activities associated with its Rolleston West, Sarum and Wandoan coal projects.
The Australian newspaper reported last week that the move followed a deal struck between the federal government and miners recently that would see the RSPT being dumped in favour of a softened  minerals resource rent tax (MRRT).
Under the MRRT, iron ore and coal projects will be taxed at a headline rate of 30%, down from the previously planned 40%, and the cut-in rate of the tax has been adjusted up.
An announcement earlier last week from Xstrata confirmed A$400 million (K968 million) in spending planned at its Ernest Henry copper mine would resume in light of the government’s tax back-down.
“Today’s decision effectively lifts the suspension on expenditure announced by Xstrata last month and allows the next stage of planning for this internationally significant Wandoan project to proceed,’’ Xstrata Coal chief Peter Freyberg said.
Freyberg said if final approvals were  given, which is expected in the second half of this year, the A$6 billion (K14.5 billion) Wandoan coal project would create 3,000 jobs.