Australian miner Anglo American is set to seek $30bn in foreign exchange from Australian investors, according to Australian Financial Review.
AFL Media understands the company will use foreign exchange to fund the acquisition of Anglo American’s Australian mining assets, and will likely seek a 10 per cent interest rate on the proceeds.
The deal is expected to be completed by the end of next year.
It follows news that Australia’s largest mining company, Rio Tinto, is looking to acquire gold and uranium from the Anglo American Gold Corp. in an effort to boost its own balance sheet.
Rio Tinto has already signed an acquisition agreement with Rio Tandoori, a subsidiary of Anglo Gold, which will see Rio Tonto acquire a 20 per cent stake in Anglo Gold Australia.
Australian Financial Review understands the deal is set for completion by the start of 2019, with the sale to be formally approved by the Commonwealth and Australian regulators.
Read more at ABC.
Australian Premier calls for foreign exchange tax to be reduced amid mining downturn article Premier Annastacia Palaszczuk is calling for a cut in foreign currency taxes, saying the Australian economy is on the brink of a “lost decade”.
“The mining industry is in a period of crisis,” Ms Palaszzczuk told a press conference in Canberra on Monday.
“It is time for the government to step up and put the brakes on a boom that is about to destroy our economy.”
That’s why I want to call for a reduction in the foreign exchange taxes we are paying.
“”We’ve got to do this for the Australian people.
“Mr Palasak said that the Government must find the balance between the growth of the economy and the tax burden.
She said the Government was also facing challenges from foreign investors in mining.
Foreign investors are increasing their investments in Australia in the wake of the global financial crisis, and the Government needs to make sure they are taxed on that growth.
Ms Palasziuk said foreign investment in Australia was growing at more than 40 per cent annually.
Mr Palmer said the mining sector was facing the same pressures as the broader economy, and it was time for governments to put their stamp of approval on the mining boom.
He said the country needed to do everything possible to boost growth in the mining industry.
Prime Minister Tony Abbott and his Treasurer Joe Hockey have said the government will introduce a “tax avoidance” legislation, which would make foreign investors pay an extra tax of up to 30 per cent on the value of their investment.
Australia’s top mining and resource sector officials have also spoken out against the proposed tax reform.
Last month, Treasurer Joe Abbott said the Federal Government was considering introducing a “socially responsible foreign exchange” tax to support the Australian mining industry, in addition to the “tax evasion” legislation.
Labor is also calling for the Government to introduce a tax reform package that would create a “national security fund” for the mining community, which it said could create tens of thousands of jobs.
Former Treasurer Joe Oliver said there was “serious” concern over the tax reform proposals.
Earlier this month, the Australian Conservation Foundation (ACF) released its annual State of Conservation Report.