Discovery Metals, a dual listed copper mining junior is upbeat they will not be affected by Australia’s punishing ‘steep’ tax regime that takes effect in 2012.
Australian government has announced a 40% resource mining tax under the Resource Super Profits Tax system in July 2012. The government currently charges 30% tax on resource companies.
Managing Director, Brad Sampson said his Perth-based copper junior would not be affected as they are currently concentrating activities on the Boseto Copper Project in northwest Botswana and not mining in Australia.
The tax decision has pitted the government against resource giants such Xstrata, BHP Billiton and Rio Tinto. Sampson said his company would have never imagined working
under such a tax regime, with the potential to negatively affect their profit margins.
“We are happy to operate in Botswana which has one of the lowest tax rate regime in the region.” Botswana has a competitive corporate tax currently at an annual rate of 25%. Discovery Metals would start commercial production of Boseto Copper Project in December 2011, employing 250 people at full production.