The RSPT may also have implications for rail. In the context of reduced expansion plans, will the three majors possibly wind down tonnages on their existing lines, or ramp them up, not investing in further rail tracks.
All up it's not optimal at all from a sector perspective, but there might feasibly be now more scope for third party rail access, as the income derived outsourcing of rail by majors might fall outside of the scope of project profits, as defined by RSPT guidelines.
In this context it may be beneficial for the majors to transfer ownership of their Pilbara operations to new (fully or partially owned) entities i.e. allocating components of iron ore operations to separate entities as a means keeping reported project profits down per entity, thus reducing the tax bill overall. I'm not a practising accountant, but there would be scope for this I would imagine.
BRM Price at posting:
$3.17 Sentiment: LT Buy Disclosure: Held
