Abbott settles in to life as prime minister

Thermal coal markets remain oversupplied and could become more so as further production comes online in major coal producing countries. According to a note from Fitch Ratings, “the Asia-Pacific thermal coal market will remain oversupplied in the next 12 months because strong pro

A week on from his comprehensive win in the Australian general election, Tony Abbott is settling into life as the Australian prime minister and starting work on fulfilling his election pledges. “People expect the day after an election an incoming government will be getting down to business,” he told reporters after his election win.

Repealing the carbon and mining taxes

Chief among his plans for his first 100 days in office is repealing the Mineral Rent Resources Tax (MRRT) and unpopular carbon tax – moves that will be popular with the country’s mining industry, which has been left battered by rising costs and low commodities prices.

"Repeal of the MRRT will make a material difference to industry confidence," Mitchell Hooke, CEO of the Minerals Council of Australia, said. "It will also send a powerful signal that Australia is not about to relinquish its position as a premier destination for investment and a cost-competitive global supplier of minerals resources."

Not as simple as it might seem

But despite his majority of more than 30 seats in the 150 seat lower house of parliament, Abbott may not find it easy to get his moves approved as the Senate will remain in the hands of Labor and the Greens.

And despite the assertions of Andrew Robb, who is expected to become minister for finance and trade in Abbott’s government, the new administration may find it harder to “reboot” the mining boom than just repealing the MRRT, as demand for the countries commodities remains slow. 

Edited from various sources by Jonathan Rowland

Read the article online at: https://www.worldcoal.com/coal/16092013/coal_australia_mining_industry_welcomes_plans_to_end_carbon_and_mining_taxes_coalnews_43/