21 July 2014
Vicky Validakis
Australian Mining
Perilya has welcomed the abolishment of the mining tax stating the measure will save the company more than $3.5 million a year.
Managing director Paul Arndt said like other companies around the country, Perilya was set to save a fair amount of cash now that the tax had been repealed.
Operating a zinc and lead mine in Broken Hill, Arndt said the company had been opposed to the tax since its inception, ABC reported.
“There are also additional renewable energy target charges that would amount to a further approximately $2 million to $2.5 million, though they won’t necessarily change,” he said.
“But certainly getting that $3.5 million return from the carbon tax is very, very significant, certainly more than the combined profit that we’ve made from Broken Hill in the past three years.
“That $3.5 million a year saving is significant money to us.”
Arndt stopped short of blaming the tax for Perilya’s tough run of late as the company posted significant losses.
He said low commodity prices and a high Australian dollar both contributed to the $20 million first half loss last year.
“I think that there are other factors that have contributed to the loss,” he said.
“Our losses last year…were associated more with the strength of the Australian dollar and also where metal prices had gone to.”
The news of the axed mining tax was also welcomed by NSW Minerals Council, the Queensland Resources Council, and the Australian Mines and Metals Association.
Prime Minister Tony Abbott stated that he had achieved the election promise of ‘axing the toxic tax’.
The mining tax is now in the Coalition’s sights for a repeal.
Courtesy of Australian Mining