Local fears on mining tax hit

Alex de Vos
A proposed tax on mining “super profits” has alarmed two big Geelong employers.
Spokesmen warned the tax could drive up costs for Blue Circle Southern Cement and Alcoa.
Cement, Concrete and Aggregate Australia chief executive officer Ken Slattery said the new tax reform was a “major concern” for Blue Circle’s manufacturing operations at Waurn Ponds.
Mr Slattery warned the tax could drive up construction costs to price first-home buyers out of the market.
“We’re quite worried about it,” he said.
“Anyone that takes materials out of the earth would be effected one way or another. It would result in a higher burden relevant to miners and that would end up being passed on to the customers.
Mr Slattery, whose organisation represents the interests of cement, pre-mixed concrete and extractive industries, said Federal Government’s 40 per cent resource rent tax could have “significant flow on effects”.
Mr Slattery said Blue Circle sourced its material from quarries on private land.
Blue Circle would miss out on any benefits under the proposed tax because it sourced its materials on private land while the proposal’s royalty rebates only covered mining on sites under the control of the Commonwealth.
An Alcoa spokesperson said the aluminium giant was also concerned about the tax.
“There could be some big knock-on effects to the community and small businesses but beyond that it remains to be seen how it will effect us,’ the spokesperson said.
Federal Member for Corio Richard Marles said the tax would benefit some mining companies.
“Very important provisions are being made for local industries,” Mr Marles said.
“The idea of having a resource tax model as opposed to royalties ought to be of benefit to most people who are mining a closed-value product.”