ASX Asks Miners to Tone Down Their Language

11 May 2010 (Last Updated May 11th, 2010 18:30)

The Australian Stock Exchange has asked two miners to tone down the language used in statements referring to Australia's proposed 40% super profit resource tax. The exchange said it has blocked Haoma Mining's chairman address from being released on its company announcements platform bec

The Australian Stock Exchange has asked two miners to tone down the language used in statements referring to Australia's proposed 40% super profit resource tax.

The exchange said it has blocked Haoma Mining's chairman address from being released on its company announcements platform because of emotive and intemperate language.

According to Reuters, Haoma chairman Gary Morgan said the tax would be "disastrous" for most miners that anticipate establishing a new mine in Australia, and it would take "generations of prudent government to reverse this damage to Australia's sovereign risk".

The ASX said the speech did not meet ASX rules, designed to ensure announcements are made in an objective manner and avoid emotive and intemperate language.

The Australian Federal Government has been criticised by critics and some of the mining industry's leading players for relying too heavily on the new tax to return the national budget to a surplus of A$1bn ($894m) in 2012-13, compared to the A$57bn ($50.9bn) deficit this year.

Australian Treasurer Wayne Swan, however, said the budget does not take into account any revenue from the resource super profits tax as figures will not show on the national balance sheet for at least three years.

The Federal Government's super profit tax, proposed last week, has already led to the suspension of a number of projects as miners warn of difficult investment decisions ahead.