Mining tax to 'kill thousands of jobs'

Mining magnate Clive Palmer says he's shelved two big projects because of the
federal government's proposed tax, including one which would have created 3000 jobs.
The Queensland billionaire and coalition backer has been a vocal critic of the
federal government's proposal to tax mining profits by 40 per cent, saying it
threatens to destroy the industry.
He says he has canned mining exploration plans in South Australia, while there will
be no expansion of a billion dollar iron ore project in the country's west.
That project would have delivered 3000 direct jobs and some $2 billion a year in
exports, he estimated.
"There are (also) projects that we haven't announced that we've been planning that
we have to stall on," Mr Palmer told ABC Television on Thursday.
The federal government has accused Mr Palmer - a major financial backer of the
Liberal National Party in Queensland - of talking about projects that don't exist.
Mr Palmer was forced to admit his $6.5 billion mine project in Queensland's Galilee
Basin will go ahead as planned, but said the tax would block any expansion works.
"We shouldn't be happy with a $6.5 billion project. We should want a $20 or a $30
billion project," he said.
He said he'd prefer a tax on the rich, like himself, rather than a tax that would
have a roll-on effect for the whole of the country.
The profits tax has already dented Australia's reputation overseas, with South
Africa and South America destined to benefit from the change, Mr Palmer argued.



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