Ernst & Young Industries Mining and Metals - Ernst & Young - Australia

The MRRT legislation passed through the Senate on 19 March 2012. Affected taxpayers must now be MRRT ready by the commencement date of 1 July 2012 (pdf, 381.9kb). In order to prepare, our tax insight sets out the key decisions you need to make and explores your future obligations.

We explore the impact of the carbon pricing mechanism (pdf, 782.2kb), the ability for companies to opt-in, as well as an overview of ATO compliance activity.

On January 13 2012 and with immediate effect, the Queensland Government announced that exploration permits and authorities will now be subject to stamp duty (pdf, 323.3kb), at a 5.25% rate in most cases. Our Tax Insight provides a brief explanation of this legislative change, how it will impact companies and what actions you should now be taking.

Looking for value in volatility, we look at the major trends in transactions and financing in 2011 and the outlook for 2012 from a commodity and regional perspective.
Appetite for mining deals in 1Q 2012 remains strong, despite volatility.

Growth in steelmaking capacity still exceeds demand, with significant over-capacity putting pressure on operators’ profitability. Discover the significant challenges for this sector, how steelmakers can compete for growth and the outlook for 2012.

The paper highlights the investment frameworks in development, the fundamentals driving the case for investment in rare earths exploration and production (pdf, 1.5mb), and the financing and the available exit options to rare earths developers and investors.

Mining and metals companies have stronger balance sheets and valuations have decreased, potentially increasing M&A opportunities. But M&A decisions are more difficult than ever.