Australian coal mines cost 38% more than US
The Business Council has estimated that coal and iron ore projects cost up to 38% higher than the US, with export gas projects up to 50% more expensive, according to the Sydney Morning Herald.
Unpredictable and unnecessarily complex government regulatory and decision-making processes, problems with planning design, scheduling and procurement, plus workplace relations are causing Australia's deteriorating competitiveness.
For example, the cost of building 1km of a major toll road or freeway had risen 143% between 2006 and 2012, a BCA member said.
The cost per kilometre had risen from $4.6 million to $11.1 million - requiring 36 months to complete (up from 27 months) and 86 staff (up from 57).
Embarrassment as Rio tax funds returned
Rio Tinto has ultimately paid no mining tax to the Australian government during the first year of the controversial tax, after pre-payments made in April were refunded by the tax office, according to the Sydney Morning Herald.
In a blow to the Labor government less than a month before the federal election, review work by Rio and the tax office since June 30 has shown the multinational miner was not liable to pay any tax for the 2013 financial year.
The mining tax forces companies to estimate their exposure and make payments every three months, but the bill is not determined until after the conclusion of each financial year.
The revelation that Rio's pre-payments were refunded has raised the prospect that other companies such as BHP Billiton may have had their pre-payments refunded, too, and comes just a week after the Rudd government downgraded its revenue estimate for the tax over the next four years.
Vale says low stockpiles may boost spot iron price
Vale, the world’s largest iron ore miner, says lower Chinese stockpiles of the steel-making commodity, a possible recovery in housing development and a Chinese government-led slum-renovation program will help underpin the spot price, according to the Australian Financial Review.
Vale, which reported better than expected second-quarter iron ore sales, remained upbeat about the spot price, despite fears Chinese demand was cooling.
“Very low iron ore inventories, the need for steel mills to restock in advance of the winter season (and) signals of a recovery in housing starts” and a Chinese slum renovation program are likely to “offset the effect of the entry of the new Australian supply in second half of 2013, contributing to maintain prices hovering around the current level,” the company said in a statement.
