Coal & Allied committed to the long haul

Coal & Allied intends to remain a long term member of the Hunter Valley community, but has acknowledged the current uncertainty as a result of the federal government's proposed resources tax.

Coal & Allied is looking to increase its coal production in the Hunter, and has expansion plans at all of its sites.

External Relations General Manager Fiona Nicholls said Coal & Allied is a major employer and significant investor in the region.

"For the 25 million tonnes of coal produced last year by Rio Tinto managed operations in the Hunter Valley, governments received more than $500 million in taxes and royalties, which help build hospitals, roads and schools," said Ms Nicholls.

"This includes more than $200 million paid to the New South Wales Government.

"We paid another $1.3 billion to businesses who supplied a range of goods and services, and more than 80 per cent of these payments were made locally or in New South Wales.

"We directly employed around 1,800 people and our modelling shows that another 5,300 people were employed in the Hunter Region's economy as a result of Coal & Allied's operations."

Coal & Allied's contribution to New South Wales extends beyond the immediate economic benefits of its business.

Since their inception, Coal & Allied's community development funds in New South Wales have contributed more than $9.6 million to the communities in which it operates.

"We are very concerned about the new tax proposal and its impact on mining industry projects and regions in Australia," said Ms Nicholls

"We believe the new tax would have serious consequences for the industry.

"Rio Tinto, the major shareholder which manages Coal & Allied, is reviewing the potential impact of the proposed tax on all of its operations and new projects in Australia.

"Rio Tinto is unable to determine the impact of any Resource Super Profits Tax until the details of the government's proposal become clearer.

Ms Nicholls said no decision has been made to shelve any Coal & Allied projects following the announcement by the Federal Government of the proposed new tax.

"The project approval work currently being undertaken is necessary before capital decisions can be made," said Ms Nicholls.

"However we will not be able to invest major project capital until we can make a proper evaluation of the full impact of the proposed additional taxes."

Media Enquiries: Matthew Klar 0457 525 578

Media release - Coal & Allied committed to the long haul [PDF: 40 KB]