AngloGold Threatens to Cut Australian Exploration


AngloGold Ashanti will cut its investment in exploration in Australia if the country implements its proposed mining tax.

Of the company's $180m global exploration investment, 10% to 15% is allocated for Australia.

AngloGold Ashanti CEO Mark Cutifani said the company will not meet this quota for exploration in Australia if the super profit tax is enforced in its current form.

AngloGold joins BHP Billiton, Rio Tinto and Xstrata in their campaign against the proposed 40% tax on mining project profits in Australia, the biggest exporter of coal and iron ore.

Cutifani said the proposed tax has made the $499m Tropicana project in Western Australia difficult but it is still on track.

Meanwhile, Australian Prime Minister Kevin Rudd said the government is fully committed to the planned tax, which will apply to profits on resource projects above the long-term bond rate, currently about 6%.