Xstrata Restarts Investment In Queensland Coal Projects

6th Jul 2010 02:17

SYDNEY (Dow Jones)--Xstrata Plc's (XTA.LN) coal division will restart A$186 million of investment into its major development projects in Australia's Queensland state, the company said Tuesday. The work at Rolleston West, Sarum and Wandoan had been put on hold during the debate over the Australian government's proposed Resource Super Profits Tax, which was replaced on Friday with a new, more lenient Minerals Resource Rent Tax that will affect only coal and iron ore assets. Xstrata, alongside BHP Billiton Ltd. (BHP.AU) and Rio Tinto Ltd. (RIO.AU), was one of the industry's key negotiators with the government over the revised version of the tax. The A$6 billion Wandoan coal project is one of the biggest development projects for the Swiss-based, London-listed miner, with a final investment decision due to be made in the second half of 2011. "Today's decision effectively lifts the suspension on expenditure announced by Xstrata last month," the company said in a statement. -By David Fickling, Dow Jones Newswires; +61 2 8272 4689; [email protected] (END) Dow Jones Newswires July 05, 2010 21:17 ET (01:17 GMT)