Resource taxes Miscellaneous 2013

MRRT and Carbon Tax: Issues for financiers and funds

Source: QLD

Published Date: 13 Feb 2013

 

The MRRT will have a significant impact on pricing of projects and security positions. Financiers and funds will need to be aware of:??

  • Core mining project interest identification provisions, particularly in the case of joint venture arrangements, passive JV investors, farm-in arrangements andofftake arrangements
  • Concessions that certain miners may claim that have the impact of eliminating allstarting base value and MRRT deductions, impacting on value for funding and security enforcement
  • Transfer of MRRT loss provisions and impact on project valuation
  • Treatment of expenses, in particular, financing expenses, lease expenditure, hire purchase fees, hedging expenses and security deposits
  • Ensuring tax sharing agreements are appropriately updated to remove the risk of joint and several liability for tax liability across entities within a MRRT consolidated group
  • Issues for financing M&A activity.

Financiers and funds will also need to consider the impact of carbon pricing on projects and investment, particularly:

  • Identifying entities that will be required to surrender emissions units in respect of emitting activity, including through operator and control provisions
  • Understanding liability criteria and impacts of failure to comply
  • Understanding carbon price path
  • Anticipating development of derivatives following the fixed price period.

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Individual Session

MRRT and Carbon Tax: Issues for financiers and funds

Author(s): Teresa Dyson

Details

  • Published By: Teresa Dyson
  • Published On:13 Feb 2013
  • Took place at:Hyatt Regency Sanctuary Cove, Gold Coast

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Resource taxes Miscellaneous 2013

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