19/12/2012 - 11:45

Uranium deal reaps stamp duty boost

19/12/2012 - 11:45

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Uranium deal reaps stamp duty boost

 

The state government will get a US$22 million stamp duty windfall after Canadian company Cameco completed the purchase of the Yeelirrie uranium project for US$430 million.

Cameco announced in August it had struck a deal with BHP Billiton to purchase Yeelirrie, which is one of Australia’s largest undeveloped uranium deposits.

It is additional to Cameco's Kintyre uranium exploration project, also in WA.

Completion of the purchase followed the receipt of necessary approvals from the WA government and the Foreign Investment Review Board.

“With the acquisition completed, Cameco will be paying stamp duty of about US$22 million to the government of Western Australia,” the company said.

The payment of stamp duty on the purchase of mining and infrastructure asets has become a contentious issue, with companies as diverse as OZ Minerals, Alcoa, Brookfield Rail, AGL, Origin Energy, and Westralia Airports Corporation disputing stamp duty assessments.

A key issue has been the definition of ‘land’ and whether it is subject to stamp duty.

In September, OZ was successful in getting the state tax office to review an earlier assessment, after taking thematter to the State Administrative Tribunal.

Its case related to the 2007 takeover by Oxiana (an OZ Minerals subsidiary) of Agincourt Resources.

In dispute was the treatment of certain mining interests held by Agincourt in Indonesia.

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