Antinuclear

Australian news, and some related international items

With Diesel rebates, BHP’s Olympic Dam Royalties likely to return poorly to South Australian Government

 Mike Rann has claimed that the new open-pit mine will be his “economic legacy to the state.” However, a consideration of the financial return to BHP through diesel rebates alone indicates that this legacy may be somewhat overstated…

 BHP stands to gain $128 million per year in diesel rebates in the initial development period of the mine, $144 million per year in the intermediate stage, and $178 million per year at full production.

Public resources for private profit: free water for the largest open-pit mine in the world  Coober Pedy Regional Times, by: Nectaria Calan, 13 Oct 11,  “………With approval of the new mine announced on Monday, the next stage of the approval process is the negotiation of a new Indenture Act which will apply to the new mine. It is expected that the revised Act will be introduced into the South Australian parliament next week, given Mike Rann’s commitment to finalising the indenture agreement  before his retirement on October 20.

It is within the power of the South Australian government to negotiate a substantially different indenture agreement, or to repeal the Indenture Act completely. 

Mike Rann has claimed that the new open-pit mine will be his “economic legacy to the state.” However, a consideration of the financial return to BHP through diesel rebates alone indicates that this legacy may be somewhat overstated. Under current fuel tax credit rates, BHP stands to gain $128 million per year in diesel rebates in the initial development period of the mine, $144 million per year in the intermediate stage, and $178 million per year at full production. The total South Australian and F e d e r a l  Go v e r nme n t   r e v e n u e s   o v e r   t h e   3 0   y e a r expansion scenario in BHP’s Draft Environmental Impact Statement are estimated at $10.5 billion (including royalties to the state government). By year 30, nearly half of this ($5.1 billion) will have returned to BHP in the form of diesel rebates.
The exclusion of diesel rebates from BHP’s economic assessment of the project results in a 50 per cent overestimation of the economic benefits to the State and F e d e r a l   g o v e r n m e n t s .   I n   i t s   S u p p l e m e n t a r y
Environmental Impact Statement BHP’s response to the question of the financial sustainability of the project if
t h e   r e b a t e s   a r e   r e m o v e d   i s   t h a t   t h e   “ e c o n o m i c assessment of the proposed expansion assumed the
existing regime of diesel fuel rebates would continue.”…

http://cooberpedyregionaltimes.files.wordpress.com/2008/11/coober-pedy-regional-times-13-10-2011.pdf

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October 13, 2011 - Posted by | business, Olympic Dam, reference, South Australia, uranium | ,

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