Source: Mining Weekly                          Date: 29 September, 2011

Countries should take care to maintain global competitiveness when reviewing their tax laws, cautioned BHP Billiton chairman Jac Nassar in its company's annual report. The executive spoke to countries like Mongolia who could unreasonably tax mining companies at the expense of their own mineral sector's future.Although tax law review is standard, Nassar advised countries to pay mind to global competition in their respective mining sectors and consider ongoing investment in jobs, skills, growth, and development of other sections. BHP Billiton has paid approximately USD 12.3 billion in taxes and royalties during the 2011 financial year. It gave an addition USD 195.5 million to a variety of community programs."Resources are fundamental for the economic growth of developing countries as they are needed for buildings, transport, and infrastructure. Over the past decade, these economies have contributed more to global growth than the developed world," said Nassar.About 25 countries have raised taxes or plan to do so this past year, including Australia, South Africa, and Peru, reported Ernst & Young. Global imbalances and high levels of debt in both Europe and the United States could result in market volatility. However, he described a positive outlook for the global economy in developing countries, specifically mentioning China. Economic development will likely support demand and create projects for companies like BHP Billiton.BHP plans to invest more than USD 80 billion in the next five years in central resource destinations and approved 11 major projects worth USD 13 billion in the last financial year.