Australia

Mayank Mehta, Chandrasekhar Atreya and Sanjay Barot
23 Jun, 2010
New York City

Prime Minister Kevin Rudd defended his super profit tax plan. Citadel plans to increase its stake in Saudi copper project to 70% from the current 50%. Woodside plans to approach Fair Work for withdrawal of strike by crane and forklift operators at its Pluto project.

[R]6:00 PM Sydney, Australia – Prime Minister Kevin Rudd defended his super profit tax plan. Citadel plans to increase its stake in Saudi copper project to 70% from the current 50%. Woodside plans to approach Fair Work for withdrawal of strike by crane and forklift operators at its Pluto project. Aborigines halt talks on Australian gas plant.[/R]

Australian stocks declined for the second day in a row and the ASX 200 index in Australia decreased 65.34 or 1.43% to 4,493.00.

Australian Prime Minister Kevin Rudd said in Canberra today that he is seeking a sensible and balanced settlement with mining companies who are opposed to the proposed mining super profit levy of 40%.

“What we are looking for is a profits-based tax levied at 40% for existing projects and in the future capable of delivering revenue to meet the government’s policy priorities,” said Rudd while speaking to reporters today.

Citadel Resources Ltd, the Melbourne-based company, is interested in boosting its stake to 70% in the copper deposit at Jabal Sayid, Saudi Arabia from its current 50%. The company plans to start development at the copper and gold development project by the fourth quarter next year.

“It is a great project and so if we can do it as an accretive deal we would obviously do so,” said the CEO Ines Scotland in an interview today.

East Timor President Jose Ramos-Horta said he wants the Sunrise Project of Woodside Petroleum to pipe the gas from the project to a plant in the country because it would bring much needed economic development.

“I see the project catapulting our economy into prosperity and also creating lots of jobs in East Timor,’ the President said at a news conference in Canberra today with Prime Minister Kevin Rudd.

East Timor right now entirely depends on revenue from the ConocoPhillips run oil project at Bayu-Udan and needs to find additional financial resources to support the economy, said Ramos-Horta.

A dozen crane and forklift operators struck work on April 28 seeking pay hike at Woodside Petroleum’s Pluto project site affecting the work of mechanical and electrical contractors, according to a statement by Woodside Petroleum’s report to the Australian Stock Exchange.

Woodside said in a statement today that it plans to file an application with Fair Work Australia to get the operators to work, describing it as “protected industrial action.”

ASX Movers

CSL Limited led gainers in the S&P ASX 200 index with a rise of 2.0% followed by Westfield Group 1.1%, and APA Group 1.0%.

Perpetual Limited led decliners in the S&P ASX 200 index with a loss of 1.3% followed by Cochlear Limited 0.6%, Macquarie Group Limited 3.0%, Commonwealth Bank of Australia 2.2% and BHP Billiton Plc 1.4%.

Other Movers

Australia and New Zealand Banking Group Limited, the lender, fell 1.1% to A$22.96.

BHP Billiton plc, the mining company, fell 1.4% to A$39.13.

Citadel Resource Group Limited plunged 10.7% to A$0.29 after the developer of Saudi Arabia’s copper deposit announced a $A250 million capital raising exercise. The funds will be used to boost Citadel''s stake in the Jabal Sayid copper and gold project in Saudi Arabia to 70%.

Qantas Airways Limited, the airline, fell 1.6% to A$2.36.

Rio Tinto Limited dropped 1.8% to A$70.81 after the mining company said it wants to expand Yarwun alumina plant by second half of 2012.

Woodside Petroleum Ltd decreased 1.2% to A$44.72 after the Australian Aborigines have withdrawn from talks with the government and Woodside Petroleum over a proposed gas plant on the country''s pristine northwest coast, an indigenous group confirmed Tuesday.