A super profits tax on mining would be a retrograde step
Media statement
Sydney, Australia
Glencore is deeply concerned by reports that the Australian Government may break its promise not to impose a super profits tax on the mining sector.
We urge the government to address the current uncertainty by ruling out a super profits tax on coal exports.
Targeting one of Australia’s most important export industries will blindside key trading partners, undermine investor confidence and potentially negatively impact thousands of jobs and regional business.
Glencore agrees that rising electricity prices in Australia need to be addressed.
A super profits tax on the coal export sector though will have no impact on consumer energy prices, while undermining the economic growth driven by our export industries.
Short-term political changes to tax regimes risk undermining investment in resources and making Australia’s energy challenges greater in the medium term.
The State and Federal Governments are already benefiting from higher royalty and corporate tax revenue from resource commodity export markets. The minerals sector alone accounts for 40% of the national corporate tax take.
Glencore supports sensible policy reform that has been properly considered, is not rushed, and involves genuine consultation on reasonable policy options with the companies that will be most affected.
For further information, please contact:
Francis De Rosa
m: +61 417 074 751
e: Francis De Rosa
Notes for editors
About Glencore
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. The Group's operations comprise around 150 mining and metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial activities are supported by a global network of more than 30 marketing offices.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 135,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative. Our ambition is to be a net zero total emissions company by 2050.
Glencore recognises our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021 we increased our medium-term emission reduction target to a 50% reduction by 2035 and introduced a new short-term target of a 15% reduction by 2026.
Visit Glencore's website to find out more.
About Glencore Australia
In Australia, Glencore produces coal, copper, cobalt, nickel, zinc, lead, silver and gold from 25 mining operations. We also operate metals processing assets in Queensland, New South Wales, Western Australia and the Northern Territory, including metals smelters, concentrators and refineries.
We are among Australia’s largest producers and marketers of natural resources, connecting Australian resources with industrial customers around the world. Through our diverse portfolio, we responsibly supply the resources that advance everyday life.
We employ 17,300 people in Australia and in 2021 contributed $14 billion to the regional, state and national economies. This included spend of $9.2 billion with 8,600 businesses across the country, as well as $2.9 billion in government tax and royalty payments.
We are committed to providing a safe, inclusive and respectful workplace for our people, to respecting the environment, to engaging openly and constructively with the Traditional Owners on whose lands we operate and to bringing value to local communities.
Glencore recognises our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021 we increased our medium-term emission reduction target to a 50% reduction by 2035 and introduced a new short-term target of a 15% reduction by 2026.
Learn more about Glencore Australia.