Western Australia’s position as the nation’s destination of choice for mining investment will be jeopardised by the WA Nationals’ job-destroying $7.2 billion new mining tax.
According to recent statistics released by the WA Government’s Department of Mines and Petroleum (DMP), the State had attracted 66 per cent of the nation’s total mining investment in 2015-16 and Western Australia’s mineral and petroleum industry was valued at $87.9 billion.
The DMP report also showed that in 2015-16, new capital expenditure in Western Australia by mining, manufacturing and other selected industries decreased by 22 per cent to just over $43 billion. Western Australia accounted for 34 per cent of Australia’s $1.27 billion total.
CME chief executive Reg Howard-Smith, said that while the statistics were good news for WA, the sector’s future would be severely impacted by the Nationals’ job-destroying new mining tax.
“These figures are positive and it would be good to see them continue to grow in the future. However, the competition to attract investment is very strong, especially from competitor countries such as Brazil. Unfortunately, there is a very dark cloud on the horizon for the iron ore sector in Western Australia in the form of the WA Nationals’ devastating new mining tax,” Mr Howard-Smith said.
“A record 757 million tonnes of iron ore was produced in 2015-16 worth just over $48 billion, showing it is still the state’s most valuable commodity. On each one of those tonnes mined by the companies being targeted by the new tax, BHP and Rio Tinto, pay more than $17 per tonne, not 25 cents as deceptively claimed by the WA Nationals.
“This is money that is used by the government to build schools and hospitals and fund the Royalties for Regions program, among other things.
“All this is on top of the fact that the iron ore sector employs thousands of people and supports hundreds of local organisations and businesses. All that will be placed at risk by this tax.”
You can view the report here
To learn more about the facts and consequences behind the proposed new mining tax visit www.waironore.com.au
