Rudd undermined, but the Resources Tax idea spreads
Pressure from mining corporations like BHP Billiton and Rio Tinto, combined with the political ambitions of right-wingers, Bill Shorten and Paul Howe must have played a part in the undermining of Prime Minister Kevin Rudd.
Kevin Rudd might not be a cuddly, warm and fuzzy person, but Rudd had the interests of Australians and their children and grandchildren at heart, in promoting the Super Profit Resources Tax.
BHP Billiton, Rio Tinto etc had at heart the interests of corporate profit, in Australia, but also in other countries. They worried that other government’s might put their people’s future ahead of those corporate profits.
Well – the undermining of Rudd might have come too late – the idea lives and spreads- as for example in Germany – “The German Ministry of Finance, for example, has envisaged an additional €2.3 billion annual “windfall tax” on nuclear operators as part of the 2011 Federal Budget and its financial plan up to 2014.” – Wall street Journal
Mining corporations expecting Gillard to retreat on the Resources Tax
Australian Miners Won’t Mourn Rudd’s Departure, Wall Street Journal, by David Cottle, 25 June 2010, It’s safe to say the vast Australian mining industry isn’t going to miss ousted prime minister Kevin Rudd……. It looks as though a watered-down version of the levy is on the cards now, if not a total return to the drawing board……………………
Review: Resources tax, GNEP to IFNEC, Renewables
Australia: Mainstream media continues to publicise the billionaires’ revolt against Resources Super Profit Tax – as though it’s going to end Australia’s resources industries. (At the same time, China signing up for long term resources buying). Uranium market remains in the doldrums. ERA’s annual profit halved. Moves in Parliament to get REAL renewable energy legislation. Victorian Labor opposing uranium sales to Russia. Senator Scott Ludlam keeps asking those awkward nuclear questions.
International: USA gets new renewable energy coalition. GNEP rises up again under a new name – International Framework for Nuclear Energy Cooperation (IFNEC). South Africa abandoning Pebble Bed Nuclear Reactor project. China selling nuclear reactors to Pakistan, seeing that USA is selling them to India. USA’s proposed Climate Bill is in fact a massive bailout for nuclear industry. Punjab children retarded due to uranium contamination. Anti nuclear protest at APEC. – the week that has been.
Victorian Labor Party opposes sale of uranium to Russia
The Victorian ALP State Conference on Saturday 19th June passed a Motion opposing export of uranium to Russia.
This is a strong position and an important challenge to the Federal ALP government’s stated support for the Howard – Putin uranium deal that was cut by the preceding Liberal government before the last federal election.
The Motion calls on Federal ALP to accept the findings of a Federal Parliamentary Inquiry by the Joint Standing Committee on Treaties that recommended the Russian uranium sales deal should not proceed and placed a set of strong preconditions in its path – conditions that the Federal Labor government are not honouring to date.
The Uranium Mining Gamble
The gambling is going on in both uranium markets. Some corporations gamble on selling old weapons uranium. Others gamble on digging uranium out of the ground and selling it – (if it goes belly up – well in Australia they’ll try to blame the Rudd government)
Companies Bet on Market for Enriched Uranium, Online Casino Guide, 21 June 2010, Changes in technology and vagaries like future arms control agreements can affect companies like Urenco and USEC.
Companies Bet on Market for Enriched Uranium | Online Casino Guide
…. projects such as BHP’s uranium and copper mine at Olympic Dam in South Australia. This requires billions of dollars in upfront investment projected to be recouped by cash flows in 2020 or later. The relatively high rate of return required is a function of many risks, including cost pressures and assumptions about the uranium market in 2020….. FT.com 20 June 2010,
Renewable energy, Australian media, and BHP Billiton
Across the world’s media – so much about oil spill, about wonderful nuclear power, about soccer … but also quite a lot about Renewable Energy. Yes, renewable energy is happening, and it deserves more coverage.
Of course, in Australia, the news is all about the dreaded super profit resources tax, and how awful our P.M is supposed to be. They’ve done a good job – the corporate-dominated media.
Meanwhile –
BHP Billiton are probably finding this whole tax saga quite convenient, as there are several other factors holding up the expansion of Olympic Dam. China is cutting down on energy use. Uranium prices in the doldrums.
Apart from the serious legal and environmental concerns about Olympic Dam, there’s the unmentioned issue of seismic activity.
Last year’s incident that paralysed the main shaft activity is still a mystery. It could turn out the the whole expansion operation is unsafe and unviable, and BHP can conveniently blame the Australian government, when it abandons the project
Australian media publicising mining billionaires’ cheating message
On Australian TV we witness the unappetising vision of a bunch of billionaires looking like feral hippies – protesting against the government’s proposed super profit resources tax.
Well, of course – these impoverished underprivileged citizens want to have their 15% minimum profit, pretty much untrammelled by letting us – the great unwashed, and our descendants, get some benefit from this greed and environmental destruction.
It is sad that the Australian public can be conned in this way, due to media that is either bowing to its corporate ownership, or just too stupid or slack to see what is happening.
No wonder BHP, Rio Tinto etc are scared that other governments might get the idea of acting in the interests of their people, rather than of corporations. And it’s happening – – in the nuclear industry, as Germany is about to ring in a similar tax on nuclear power.
Australia’s national organisations in favour of super profit resources tax
It’s wrong for billionaires to hijack this debate and hold the country to ransom with their $100 million scare campaign.”
Australia needs a robust tax system with fair and efficient taxation of mining super profits The Australian June 14, 2010 A JOINT statement by the Australian Council of Trade Unions, Australian Council of Social Service, Australian Conservation Foundation and the Consumers’ Federation of Australia.
NATIONAL organisations representing social and community sector, unions, environmental and consumer groups have called for the voices of ordinary Australians to be heard in a tax debate that has been dominated by powerful vested mining interests. Continue reading
Miners want 15% profit – Olympic Dam uranium mine expansion might not proceed
Broker casts doubt on viability of Olympic Dam expansion, Sydney Morning Herald, BARRY FITZGERALD, June 17, 2010
BHP BILLITON’S proposed Olympic Dam expansion in South Australia’s outback could have no ”economic value” under the Rudd government’s hotly debated proposal to subject resource company super profits to an additional 40 per cent tax……. the assessment of mining analysts at Morgan Stanley, ”Our modelling of this project shows that the resource super profits tax reduces the net present value of the project to an extent that it becomes negative, and return on invested capital falls below the minimum hurdle rate of 15 per cent used by the mining industry.
BHP Billiton’s managing director, Marius Kloppers……. said that although BHP had not shelved or frozen projects in response to the proposed tax, Olympic Dam was the sort of high capital expenditure project with long lead times that was ”most disadvantaged”……But BHP has yet to commit to the project. Approval from the SA, Northern Territory (ore is exported from Darwin) and federal governments is needed and is planned for the first half of next year. The final proposal with all the permits and conditions attached is then likely to go before the board in the latter half of next year.
Mike Rann – Premier for the Uranium Lobby
No unconditional support on tax –
Rann | Adelaide Now, Christopher Russell, June 16, 2010 Mr Rann formally opened the Australasian Institute of Mining and Metallurgy’s uranium conference 2010, being held this week at the Adelaide Convention Centre…….
AusIMM president Greg Chalmers said ……..”Uranium should have demonstrated green credentials and cost benefits if we can get over emotions versus logic.…….”
Bleak future for uranium, but not because of resources tax
The mining lobby, and their media servants revel in attacking the Australian government over the proposed super profit resources tax. They blame theis for a poor outlook for for example, the expanded Olympic Dam uranium mine.
But the truth of the poor uranium outlook is otherwise.
Tax gains from bad apples: reduce your tax bill | The Australian, 16 June 2010, Guadagnuolo sees little prospect of a sustained recovery for uranium miner Energy Resources Australia ………”Further, we think the market has overestimated the scarcity of uranium, while advances in reactor technology will limit demand as reprocessing becomes increasingly effective, with the added benefit of limiting the proliferation of nuclear materials,” he says…..PRIME CANDIDATE FOR TAX LOSS SELLING……Energy Resources of Australia (ERA): Down 43 per cent since June 30.
Uranium mining guzzles Australia’s precious groundwater
water from the Great Artesian Basin in Central Australia is being depleted to keep residual radioactive dust from uranium mining wet in order to keep it from blowing across the continent. Seven million gallons of water is being extracted from the basin per day to keep the radioactive dust in place
Unhappy Anniversary for the Atomic Bomb, Streetvibes Newspaper , June 15, 2010 Anti-nuclear activists want it to retire By Jeremy Flannery ” …..Riley is traveling across the United States with a fellow member of Think Outside the Bomb and two Australian members of Footprints for Peace to campaign for the end of nuclear energy. Continue reading
BHP Billiton fudges radiation exposure levels of uranium mine workers
The whistleblower produced documents that show BHP uses manipulated averages and distorted sampling to ensure the figures are below the maximum exposure levels set by government…..managed to manipulate the sampling by transferring workers, whose exposures were escalating, to a different area
Radiation unsafe at BHP’s Olympic Dam: whistleblower, Sydney Morning Herald, June 4, 2010 Workers at BHP Billiton’s Olympic Dam are being exposed to unsafe levels of radiation, according to a company whistleblower. Continue reading
Australia-Russia uranium dealings
The machinations have been going on for many years. One way or another, Australian uranium is getting under foreign control – take the current Russian situation. Negotiations with Russia’s Roasatom nuclear tsar, Sergei Kiryienko went on, secretly, between Kiriyenko and BHP Billiton. over many years.
Kiriyenko was to quietly visit Australia, but apparently did not. A former Prime Minister of Russia, Kiriyenko has, in recent years, guided the State nuclear agency, Rosatom, with the aim of becoming the world’s most powerful uranium and nuclear power company.
Review: resources tax, India’s dilemma, oil gusher
Australia: a seemingly quiet week. Obama cancels visit to Australia. Mainstream media continue to ignore Senator Scott Ludlam’s penetrating questioning on matters nuclear – (the taxpayer funded Uranium Council lobby, Muckaty nuclear waste plan, nuclear weapons proliferation..) BHP and Rio spend a sizable little of their massive profits to fight the govt’s super profit resources tax. These corporations fear that other countries might take up the idea too. Union push against health danger of uranium mining.
International: Dow Chemical Company escapes justice after 25 years, and hundreds of thousands of deaths from the Bhopal gas disaster. A portent for India’s nuclear energy future? Meanwhile USA seeks to prosecute BP over oil spill. U.S looks like getting useless Climate legislation. Pointless debate over nuclear bombing as a solution to BP’s oil gush .
1 This month
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