A HANDFUL of local miners are tipped to be stand-out winners -- not losers -- from Canberra's proposed 40 per cent mining super-profits tax.
While it's already accepted that miners with predominantly offshore operations will emerge unscathed, detailed dissection of the measures shows that some with local operations will be net beneficiaries, thanks to capital allowances and the exempt status of some local activities.
The resource super-profits tax provides for a 6.5 per cent capital allowance (as per the long-term government bond rate), with accelerated depreciation between 2012-13 and 2016-17.
In a report, Goldman Sachs JBWere identifies the winners as copper miner Aditya Birla, minerals sands producer Iluka Resources, joint venturer Alumina and, more marginally, copper and zinc miner Kagara Zinc.
For Iluka, Alumina and KZL the gains are 6.1 per cent, 3.2 per cent and 1.6 per cent respectively.
"Those companies with sufficient current (historic) book value, which provides a meaningful accelerated capital allowance, will gain the greatest benefits in their early years . . . due to the refund of state royalties when there is no federal RSPT liability," the firm says.
KZL Price at posting:
54.5¢ Sentiment: LT Buy Disclosure: Held
