FACTBOX-Australia mining tax hits projects

May 19 (BestGrowthStock) – Australia proposed a controversial 40
percent tax on resources projects on May 2, forcing mining
companies to review a range of projects from iron ore
developments to uranium expansions.

In the biggest hit so far, iron ore miner Fortescue Metals
Group (FMG.AX: ) put $15 billion in new projects on hold on
Wednesday. [ID:nSGE64I01K]

Following are projects that have been scrapped, put on hold
or are under threat:

SCRAPPED OR ON HOLD

FORTESCUE METALS GROUP

* Solomon Hub, Western Australia – $9 billion proposed
investment in 160 million tonnes a year iron ore mine put on
hold. Capacity would be roughly equal to what world no.3 iron
ore miner BHP Billiton (BHP.AX: ) currently mines in Australia.

Includes plan to build a new export terminal at Anketell
Point, 200 kms (125 miles) south of Fortescue’s main export
terminal at Port Hedland. Could hit plans by Fortescue to lay
its own rail lines from the deposit to the Indian Ocean
coastline.

Could hurt Aquila Resources (AQA.AX: ) and several smaller
iron ore miners, including Atlas Iron (AGO.AX: ) and BC Iron
(BCI.AX: ), relying on growth in Fortescue’s infrastructure to
support their own expansions for production to between 5
million and 30 million tonnes a year.

* Western Hub, Western Australia – $6 billion proposed
investment. Little exploration work done so far on the project.

CAPE LAMBERT RESOURCES (CFE.AX: )

* Cape Lambert South project, Western Australia – magnetite
iron ore project, potentially worth A$400 million ($345
million), scrapped. [ID:nSGE64307D]

XSTRATA (XTA.L: )

* Global miner suspended A$30 million in copper exploration
work in Australia [ID:nSYU009897]

UNDER REVIEW BHP BILLITON (BHP.AX: )(BLT.L: )

* Olympic Dam, South Australia – Estimated $20 billion
production expansion at world’s fourth-largest copper deposit
and biggest uranium deposit. BHP is studying a plan to more
than triple annual copper production capacity to 730,000 tonnes
and more than quadruple uranium production capacity to 19,000
tonnes over 11 years.

* Pilbara iron ore, Western Australia – BHP has plans to
expand iron ore production capacity from 205 million tonnes a
year in 2011 to 240 million tonnes by 2015 and is studying
plans to increase that to 350 million tonnes thereafter.

* Bowen Basin, Queensland – 45 million tonnes a year
expansion in coking coal production to 105 million tonnes a
year and export terminal expansion.

“The uncertainty is in place. It would be very difficult to
approve any of those projects,” CEO Marius Kloppers told
Australian television on May 10, referring to the above
projects. [ID:nSGE64900M]

RIO TINTO (RIO.AX: )(RIO.L: ) * Pilbara iron ore, Western
Australia – Plans to nearly triple iron ore production to 600
million tonnes over next 10 years

DELAYED INVESTMENT DECISIONS

QUEENSLAND COAL SEAM GAS PROJECTS

* Origin Energy (ORG.AX: )-ConocoPhillips (COP.N: ) – A$35
billion Australia Pacific LNG project, up to 18 million tonnes
a year capacity.

* Santos (STO.AX: )-Malaysia’s Petronas – estimated A$7.7
billion Gladstone development with capacity of up to 10 million
tonnes a year.

* BG Group (BG.L: ) – A$10-A$15 billion Queensland Curtis LNG
project, with capacity of up to 7.4 million tonnes a year.

* Royal Dutch Shell (RDSa.L: ) – Curtis Island project, 16
million tonnes a year capacity. Bidding A$3.45 billion with
PetroChina (0857.HK: ) for Australia’s Arrow Energy (AOE.AX: ) for
its coal seam gas.

* Liquefied Natural Gas (LNG.AX: ) – A$1 billion Gladstone
LNG project, 2 million tonnes a year.

Stock Market Analysis

($1=1.161 Australian Dollar)
(Reporting by Sonali Paul and James Regan, Editing by Ian
Geoghegan)

FACTBOX-Australia mining tax hits projects