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BIL
BIBLT
BHP Billiton Plc - Encouraged by Australian Resources tax changes
BHP Billiton Plc
Share Code: BIL
Share: GB0000566504
02 July 2010
BHP BILLITON ENCOURAGED BY AUSTRALIAN RESOURCES TAX CHANGES
Today, BHP Billiton Chief Executive Officer, Marius Kloppers, said the company
was encouraged by the Australian Government`s decision to replace the proposed
Resource Super Profits Tax with a Mineral Resource Rent Tax (MRRT) on mined iron
ore and coal.
"As we have previously stated, BHP Billiton believes that tax reform that is
prospective, competitive, differentiated and resource-based will ensure that the
Australian mining sector continues to grow through investment in the industry
which benefits all Australians.
"We are encouraged that the MRRT design is closer to our frequently stated
principles of sound tax reform, in that the proposed tax will be prospective in
its treatment of profits from our iron ore and coal businesses, and not apply to
the other commodities in our portfolio.
"At the request of the Prime Minister, there have been constructive discussions
in the last week with the Deputy Prime Minister and the Resources Minister which
have resulted in a material improvement from the original tax proposal," Mr
Kloppers said.
The proposed MRRT is closer to meeting the tax design principles in the
following ways:
Prospective - businesses can transition into the MRRT at market value of the
business (not the previously proposed book value) with depreciation over 25
years. This is particularly important for the iron ore and coal operations
which have been in existence for many years.
Competitive - the headline tax rate is 30 per cent, with a 25 per cent allowance
for the extraction activity such that only the resource profit is taxed.
Company tax will continue to be paid.
Differentiated - the tax applies to coal and iron ore resources with all other
resources exempt.
Resource based - taxable profit will be that at the mine gate and not on
downstream processing or infrastructure.
"There is still a great deal of work to be done before this tax is enacted, and
we will work constructively with the Government to ensure that the detailed
design of minerals taxation maintains the international competitiveness of the
Australian resources industry into the future and is in the long term interests
of the industry and all Australians," Mr Kloppers concluded.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom & South Africa
Amanda Buckley, Media Relations Andre Liebenberg, Investor
Tel: +61 3 9609 2209 Mobile: +61 Relations
419 801 349 Tel: +44 20 7802 4131 Mobile:
email: +44 7920 236 974
Amanda.Buckley@bhpbilliton.com email:
Andre.Liebenberg@bhpbilliton.com
Fiona Martin, Media Relations Americas
Tel: +61 3 9609 2211 Mobile: +61 Scott Espenshade, Investor
427 777 908 Relations
email: Fiona.Martin2@bhpbilliton.com Tel: +1 713 599 6431 Mobile: +1
713 208 8565
email:
Scott.Espenshade@bhpbilliton.com
Leng Lau, Investor Relations Ruban Yogarajah, Media Relations
Tel: +61 3 9609 4202 Mobile: +61 Tel: US +1 713 966 2907 or UK +44
403 533 706 20 7802 4033Mobile: UK +44 7827
email: Leng.Y.Lau@bhpbilliton.com 082 022
email:
Ruban.Yogarajah@bhpbilliton.com
Illtud Harri, Media Relations
Tel: +61 3 9609 2898 Mobile: +44
7920 237 246
email: Illtud.Harri@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 BHP Billiton Plc Registration
077 number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Registered Office: Neathouse
Street Place
Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 Tel +44 20 7802 4000 Fax +44 20
3015 7802 4111
Members of the BHP Billiton group which is headquartered in Australia
Date: 02/07/2010 07:14:01 Produced by the JSE SENS Department.
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