According to the company, the decision has been made following the Federal Government’s announcement that it proposes to replace the Resource Super Profits Tax (RSPT) with a Mineral Resource Rent Tax (MRRT).
The revised proposal represents significant progress towards a minerals taxation regime that will satisfy the industry’s core principles of prospectivity and maintaining international competitiveness, Xstrata said.
If approved, the AUD6bn Wandoan coal project and associated infrastructure will provide over 3,000 jobs throughout construction and operation over the next five years.
A final investment decision on the AUD6bn Wandoan mine and associated infrastructure project is expected in the second half of 2011, and will consider feasibility work, the final form of the MRRT legislation and associated royalties.
