China slowdown no concern, says Kloppers

BHP Billiton chief executive officer Marius Kloppers says China’s slowdown is in line with what other major economies have experienced as they have developed and is no cause for concern, according to the Australian Financial Review.

He told shareholders at the annual meeting of the miner’s British arm in London last night that the “unique and substantial” industrialisation and urbanisation in China continued to give BHP confidence in the long-term outlook.

But Kloppers noted prices for commodities like iron ore and coking coal had proven “unsustainably high” over the last decade when demand outpaced new supply and that situation had begun to reverse.

Peabody warns Queensland on royalty backlash

Peabody chairman and CEO Greg Boyce has warned the Queensland government its recent decision to hike royalties was counter-productive and would lead to a cut in coal volumes produced in the state, according to the Australian Financial Review.

“Where we might have thought about pushing more tonnes onto the market, the increased royalties have restricted our ability to do so,” he said ahead of a presentation at the Melbourne Mining Club today.

“The move to increase royalties is ultimately counter-productive and you’re going to see that it is detrimental to volumes as well.”

Swan was told of mining tax black hole

Treasurer Wayne Swan was warned four months ago the Minerals Resource Rent Tax wouldn’t raise any revenue in the first quarter and possibly throughout the rest of the financial year, threatening Labor’s budget surplus, according to the Australian Financial Review.

Senior Treasury and Finance officials yesterday said the government was told as early as June that the tax – which the Gillard government has nominated as one of its top legislative achievements – wouldn’t raise anything in the first quarter and the near-term outlook for profits was clouded by falling commodity prices and the high dollar.