JOHANNESBURG (miningweekly.com) - Australia's new mining tax is encouraging for mining investment in South Africa, Canada and Brazil which are major competitors to Australia in the mining field, says AngloGold Ashanti CEO Mark Cutifani.

Cutifani says that AngloGold Ashanti has had another steady 114 000 oz quarter at its Sunrise Dam operation in Australia.

Whether the new taxes will dissuade AngloGold Ashanti from going ahead with its promising Tropicana gold project in Australia is still too early to say.

"We still expect to take the project to the board for approval towards the end of the year," he says.

The one caveat is that the company will more than likely need some additional clarity on the Australian government's proposed super-profit tax on mining companies and only once the fiscal outlook for Australia becomes clearer will AngloGold Ashanti be in a position to commit significant capital to the new project.

He believes, however, that the Tropicana project still has a "very good" chance of going ahead, but "still needs a little bit of work to be done".

He expects the next three months to clarify the Australian government's approach to taxing the mining industry.

"We will be a constructive part of the conversations to try to help people understand that creating the world's highest tax environment for the mining industry is probably not the best way to support an industry that has helped Australia to navigate the financial crisis better than most countries in the world.

"We've got to be cool-headed and not over-react, but at the same time listen to concerns and make sure we put our case very clearly," Cutifani adds.

Australia-born Cutifani says he made the point on a recent visit to Australia that he sees South Africa as a country of less sovereign risk and one in which the government deferred its royalty tax for a year when the mining industry went through its financial crisis.

"That speaks volumes to the good relationship which we have with our government in South Africa," Cutifani remarks.

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