BHP angry at possible tax change

BHP Billiton has done little to douse speculation it's ready to walk away from a
resource tax compromise deal with the federal government.
The mining giant did not deny media reports on Wednesday that said it was angry at
recent comments from Resources Minister Martin Ferguson, but the miner refused to
expand on the issue.
The world's biggest resources company is thought to be furious that a compromise
reached with the government over the contentious resource super profits tax may have
been breached.
Mr Ferguson told a Queensland resources group last week that any royalty rate
increase not scheduled before May 2 this year would not be creditable, News Ltd
reported.
BHP is thought to believe the statement contradicted earlier assurances from the
government.
According to a government website, all state and territory royalties will be
creditable against the resources tax liability.
Prime Minister Julia Gillard on Wednesday said a policy transition group was working
through a range of matters concerning the new tax.
"We have said all along we'll credit existing royalties and scheduled increases and
the policy transition group is going to advise government on the best way to provide
certainty to the industry, given that policy setting," Ms Gillard said.
"Now in implementing the minerals resource rent tax we obviously wont be giving a
green light to state and territory governments to increase their royalties in a way
which means the federal government effectively foots the bill," she said.