Coal miner wary of super profit tax Posted May 6, 2010 12:32:00 Map: Oaklands 2646 A coal company says its plans for a mine at Oaklands in the southern Riverina may be affected by the threat of a new tax.
The Federal Government this week announced a 40 per cent super profit tax for mining companies from 2012.
Coalworks Limited senior consultant, Chris Hagan, says it has already affected investor confidence, with shares dropping.
"Which is a concern to us in terms of our ability to raise development capital," he said.
"We require a healthy share price and confidence from investors that they're going to have an attractive investment return and this news sends the wrong message to the market, I believe."
Mr Hagan says lower shares mean less capital for the project.
"We are still continuing with our studies, we've currently got a cold petrol, clean-coal plant study which is underway," he said.
"We've only just had the news of the Government so we're certainly going to be, as the months move forward, monitoring how it affects our ability to raise capital for this forward part of the project."
Barrick Gold has yet to officially comment on the new tax, but a Cowal Gold spokesman has told ABC News the expansion of the mine near West Wyalong should not be affected.
CWK Price at posting:
42.5¢ Sentiment: None Disclosure: Not Held
