PERTH (miningweekly.com) – Global mining giant BHP Billiton said on Monday that it would be assessing its Australian operations and investment plans in the wake of the proposed super profits tax, and would hold shareholder information sessions around the country.

BHP has joined the ranks of other major miners Rio Tinto and Xstrata, which also said that they would be re-evaluating their investments in the country, which planned to introduce the new tax in 2012.

In his first address as BHP chairperson, Jac Nasser said that while the company had no issues with a review and a reform of the current tax system, it had to be conducted around certain principles.

“Any reform proposal must only apply to new investments, not existing investments. Additionally, any reform should not disadvantage the resources industry compared with other industries in Australia, and it absolutely must not disadvantage the Australian resources industry compared with other countries.”

The federal government’s proposal to impose a 40% tax on resources companies’ bottom lines would see the total effective tax rate on BHP’s Australian profits increase from 43% to 57%, making the country’s resources industry the highest taxed in the world.

This compared with a tax rate of 23% in Canada and a range of between 27% and 38% in Brazil, which were the two largest resource-rich countries that were competing with Australia for investment, customers and jobs, Nasser pointed out.

He also echoed sentiments by BHP CEO Marius Kloppers, who earlier said that if the proposed tax went ahead, it would threaten Australia’s competiveness, jeapordise future investment, and adversely affect the future wealth and standard of living of all Australians.

“In addition, the proposed tax will unfairly impact [on] communities and working families across regional Australia, the people who provide essential goods and services to our industry, superannuation funds, individual shareholders and future generations,” Nasser said.

He warned of the risk that Australia could now be seen as a less stable and less competitive environment for long-term investments. “If this eventuates, the great work of Australians to build the strong economic foundation of the country over decades, could be undermined, representing a crucial turning point for Australia.”

However, Nasser said that BHP would seek to work constructively with the government in the debate on the new tax.

“The significance of this proposal to impose such a material new tax on the Australian resources industry has created substantial public comment by many corporations, industry bodies and political leaders. We at BHP will seek to work constructively in this debate with the aim of ensuring fairness for all stakeholders and the continuation of Australia’s long-term economic prosperity.”

Nasser noted that during the 2009 financial year, BHP paid A$6,3-billion to the Australian government, of which A$3-billion was paid to the commonwealth government, A$1,9-billion to the state government, and a further A$1,45-billion in petroleum taxes to the commonwealth government.

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