Cape Lambert Cancels Iron Ore Program Due To Tax...

Cape Lambert Cancels Iron Ore Program Due To Tax Uncertainty
04/05/2010 4:15PM



PERTH (Dow Jones)--Mining group Cape Lambert Resources Ltd. (CFE.AU) said Tuesday it has cancelled a planned exploration program at its Cape Lambert South iron ore project in Western Australia state as a result of the uncertainty created by proposed tax changes.

"The company will now shift its exploration activities to its projects outside of Australia," Cape Lambert said in a statement, released in response to the Australian government's intention to impose a Resource Super Profit Tax on mineral projects developed in Australia.

The tax change was recommended in the Henry Tax Review, unveiled by the government on Sunday.

A resources trading house, Cape Lambert sold its namesake magnetite iron ore project two years ago to China Metallurgical Group Corp., or MCC, for A$400 million.

However, it retained the nearby exploration project, which Cape Lambert says may contain the southern extension of the magnetite deposit.

Cape Lambert had planned "extensive" exploration from the second half of 2010, it said.



By Stephen Bell, contributing to Dow Jones Newswires; 61-8-9244-4243; [email protected]