voelte sovereign risk

Some here who flippantly dismiss the proposed RSPT, and put it on par with PRRT might like to consider potential collateral damage to CUE, as seen by Don Voelte (someones anti-csg hero). Extract from the Australian and link below.

This tax is VERY different to PRRT, and it's manner of imposition VERY different. Whilst it has no direct impact on CUE, the potential impact through the very real and substantial damage to Australia's Sovereign risk profile (yes including for Offshore projects) is VERY real.

EL


"...But the mining sector has complained that the new resources super profits tax has even tougher conditions than the PRRT and will take effect at a lower rate of return.

Mr Voelte said the government's planned 40 per cent tax on the mining industry would prevent companies in Australia from raising any substantial capital for major projects.

He said Woodside had about $60 billion in projects planned over the next decade and it was crucial that it was able to raise capital. "We just don't have that sort of money here," he said......"

http://www.theaustralian.com.au/business/woodside-chief-begs-to-differ-on-petroleum-rent-tax/story-e6frg8zx-1225866996341