Mine company's 'grave concerns'

Jeebropilly Coal Mine is operated by New Hope Corporation, which is being slugged with a huge tax bill.
Jeebropilly Coal Mine is operated by New Hope Corporation, which is being slugged with a huge tax bill. Sarah Harvey

UNION officials are hoping the introduction of a massive profits tax on mining companies won’t have an effect on current pay negotiations with an Ipswich-based resource company.

The CFMEU Queensland says it has started collective bargaining with New Hope Corporation, which has coal operations near Rosewood along with Ipswich landholdings.

The union’s mining division state secretary Jim Valery said the company had expressed to them “grave concerns” about the Federal Government’s proposed resources super profit tax.

The 40 per cent tax, announced by the Government following a recommendation in the Henry Tax Revue, has drawn strong criticism from Australia’s big mining companies.

Mr Valery said the union supported the tax and would work to explain the benefits of the tax to the New Hope, which specialises in thermal coal.

“They have some grave concerns about the tax, and they provided me with details of their concerns. I think the issues are to do with their current projects,” he said.

“If you look through the broad terms and look at the detail behind the support profits tax, it’s something we’re more than comfortable with.

“I think a lot of companies are out trying to hoodwink people about the impacts of the tax. We would be happy to sit down with the company and explain why we support it.”

New Hope Corporation would not spell out their position on the tax when asked by The Queensland Times, but said it was working in dialogues with the Government over the plans.

“It would be premature for New Hope to comment on the potential implications of the proposed Resource Super Tax as there is currently no legislation and the Treasury documentation on the proposal is lacking detail in certain key areas,” a spokesman said.

“New Hope is participating in the Government’s consultation process and will continue to assess the potential impacts of the proposed tax as further details become available.”

Apart from its Ipswich operations, New Hope holds various exploration holdings in Central Queensland and on the Darling Downs.

Its investments include a 100 per cent shareholding in Queensland Bulk Handling, a common user coal export terminal at the Port of Brisbane, and significant land holdings around Ipswich.

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