The Adani Group said that the 30 per cent tax levy on new and existing iron ore and coal projects in Australia will not impact it.
Adani Enterprises has started coal mining exploration at the Galilee Basin in Queensland and is expected to export coal in three years. “We are committed towards development of coal mines, railways and port infrastructure in Australia,” the company said.
On Monday, the Australian Parliament passed a law imposing 30 per cent tax on iron ore and coal miners' profits.
The ‘Minerals Resource Rent Tax' will come into force on July 1 and is expected to generate A$11 billion in the first three years. The tax will apply to companies that make A$75 million in profits annually.
The tax is expected to impact 30 companies, including global mining majors such as BHP, Rio Tinto and Xstrata.
Australia is a large exporter of iron ore and coking coal used in steel plants as also the second-biggest exporter of thermal coal. The Australian Government had said that it will use the revenues collected for infrastructure, pensions and tax cuts for small businesses. The Adani Group said that the tax will not have any significant impact on its coal mining business in Australia for several years even after start of production.
The law allows the full capital expenditure incurred to be set off from the profits derived from mining operations in the year it is made. Any unabsorbed excess is carried forward (with no time limit). State royalties are allowed be set off.
On Tuesday, the Adani Enterprises scrip was down 3.19 per cent at Rs 285.25, while Adani Power closed four per cent lower at 66.55 on the BSE.