SRK team ready to tackle MRRT minefield
01 July 2011
SRK team ready to tackle MRRT minefield
With one year to go before the Federal Government’s proposed Mineral Resource Rent Tax (MRRT) comes into effect, SRK Consulting (Australasia) Pty Ltd has brought together a Strategic Advisory team to help mining companies ensure that they are ready to comply with the draft legislation.
The team, which has more than 60 years of combined experience, will help iron ore and coal mining companies across Australia to determine the starting base value of their assets as at 1 May 2010 so they can establish depreciation offsets in calculating their MRRT liabilities.
SRK’s Strategic Advisory team is led by Mike Warren, a mining engineer with over 30 years of experience, including on-site and head office roles and five years of experience in investment banking. Mike has managed due diligence and valuations on a range of mining projects, as well as IPO’s for the Toronto, Hong Kong and New York stock exchanges.
“The tax is still in draft legislation form and there’s a lot of speculation about what its final shape will be, however, we’ve put together a team that can give a mining company some peace of mind when it comes to having appropriate technical assessments and defensible valuations of their assets,” said Mr Warren.
“There are a variety of transfer pricing methods available to establish the resource revenue at the taxing point. We have studied in detail the benefits and challenges of adopting the ‘net-back’ method and other transfer pricing methods for MRRT purposes.”
Mr Warren said that although the tax may have some teething problems, mining companies will be expected to get it right the first time.
“I don’t doubt that some of the high-profile mining companies will find themselves well and truly under the ATO’s microscope. The SRK Strategic Advisory team’s valuations are underpinned by the fundamental principles of independence, transparency and application of appropriate method.” added Mike.
SRK’s Managing Director, Brian Middleton believes the new Strategic Advisory team will not just be of use to businesses having to manage the MRRT, but any company that has ongoing valuation requirements.
“I think this team not only strengthens the services SRK offers, but puts us in a very unique position of being able to provide a specialist service at the right standard, within the right time frames and by people who have the right blend of technical and financial skills” said Mr Middleton.
The Strategic Advisory team is supported by Marvin Schneider and Robert Allison, valuation specialists with over 30 years of combined experience. Between them they have undertaken valuation engagements in relation to a wide range of resource projects including iron ore and coal, infrastructure and regulated assets for a variety of corporate clients and Australian regulatory agencies.
As part of it services, the SRK Strategic Advisory team can provide mining companies with an initial assessment of what their responsibilities may be under the proposed MRRT.
“What we can do in a short space of time, is tell you where the gaps in your information requirements are and what issues you may face. This is a targeted service where you will see immediate benefit. Following this assessment, a company is much better placed to make informed decisions regarding the valuation requirements of the MRRT,” added Mr Warren.
-ENDS-
Media enquiries: