The Prime Minister is saying that today’s Peabody bid for Macarthur Coal demonstrates that the Gillard/Brown “coal tax” has not hurt the prospects of the Australian coal industry. But today’s Financial TImes reveals that the Labor government’s taxes are having an impact on the value of Australian resource assets. Peabody has cut its offer price for Macarthur:
“Peabody last year offered as much as A$16 a share for Macarthur. But it cut that to A$15 a share after the Australian government announced plans for a so-called “super profits tax” on resources companies. That tax has been watered down. But Australia is now pushing for a carbon tax, which could lower profits on coal miners.” Extract from Peabody in new Macarthur move — FT.com
The bid is being driven by growing Chinese coal demand, of course, rather than the cost of Australian supply. Peabody has been after Macarthur for more than a year. The US miner is now offering $15.50 per share, according to the FT.