Australia mine tax favours multi-nationals-Fortescue

July 13 (Reuters) – Australia’s watered down tax on mining profits favours multi-nationals and diversified commodity producers at the expense of smaller companies, iron ore miner Fortescue Metals (FMG.AX) told a government hearing on Tuesday.

Australia’s initial 40 percent profits tax proposed for the mining sector was changed to 30 percent and exempted all but coal and iron ore miners earning more than A$50 million ($43.82 million) a year.

With profits last year of $508 million, Fortescue is almost certain to pay what’s now called the minerals resource rent tax (MRRT) if it is introduced July 1, 2012 as scheduled.

“Compared to the multi-commodity, multi-national companies which negotiated the MRRT, we have no other minerals to offset the costs associated with the MRRT,” Fortescue Chief Financial Officer Stephen Pearce said in a presentation to the Senate Select Committee on Fuel and Energy.

“The proposed MRRT does not seem fair and, on face value, appears to favour the bigger companies, which have assets that sit outside the MRRT.”

The government sought to end the damaging dispute with mining executives and investors by dumping the far-reaching “super profits” tax, clearing a major hurdle to call an early election, which polls suggest Prime Minister Julia Gillard can win. Three of the world’s biggest mining houses, BHP Billiton (BHP.AX) (BLT.L), Rio Tinto (RIO.AX) (RIO.L) and Xstrata (XTA.L), met privately with Gillard and members of her cabinet to hammer out a compromise.

Under the new tax, Rio Tinto and BHP Billiton will liable on iron ore and coal mining in Australia, while base and precious metals businesses would fall outside the tax. Likewise, Xstrata would only face a tax bill on coal mining.

Pearce said Fortescue was unable to determine the full impact of the proposed new tax as it had not seen the details of the confidential heads of agreement signed by the government and BHP Billiton, Rio Tinto and Xstrata.

He also raised doubts about the government’s ability to raise a targeted A$10.5 billion from the tax by 2014. (Reporting by James Regan; Editing by Ed Davies)

Chidambaram discusses counter-terrorism, 26/11 update with US officials

Washington, Sept 10 (ANI): Indian Home Minister P. Chidambaram held meetings here with senior Obama administration officials, including National Security Advisor Lt. Gen. (retired) James Jones, Homeland Security Secretary Janet Napolitano and the U.S. Attorney General Eric H Holder Jr. on Wednesday.

Enhanced co-operation between India and US on tackling terrorism particularly in South Asia dominated the discussions, sources said.

Pakistan’s inaction in dealing with the perpetrators of 26/11 was also raised.

Chidambaram also met Senator Dianne Feinstein, the Chairwoman of Senate Select Committee on Intelligence.

Chidambaram is scheduled to meet the Secretary of State Hillary Clinton on Thursday.

On Tuesday, officials from FBI, intelligence and security agencies and the New York Police briefed Chidambaram about the measures being taken by them to prevent a Mumbai-type terrorist attack.

From walking at the Penn Station, to a briefing by the New York Police, which had made several changes in its counter-terrorism measures post the 26/11 attacks, Chidambaram and his team of officials got to know what a mega city like New York can do to protect itself from terrorists without inconveniencing its residents.

Chidambaram was also informed about the coast guard facility at Staten Island. It was an important aspect of his trip given that the terrorists who attacked Mumbai on November 26 last year entered Mumbai through the sea route.

Within hours of his landing in New York, Chidambaram visited the Joint Terror Task Force Centre of the FBI where he was given an exclusive briefing by the New York Police Department.

Before leaving New York City for Washington by train, Chidambaram was briefed about security of the Mass Transport System at the Penn station.

The Home Minister is also scheduled to meet the top US intelligence and security officials, including FBI Director Robert Mueller and Director of National Intelligence Dennis C Blair; besides meeting National Security Adviser, Gen (Retd) James Jones at the White House. A tour of the National Counter-terrorism Centre in Virginia is also on his itinerary.

Besides meeting experts and think-tanks” members, Chidambaram is expected to hold talks with key US lawmakers, including Senator Joe Lieberman, Chairman, Senate Homeland Security and Governmental Affairs Committee; and Congressman Sylvester Reyes, Chairman, House Select Committee on Intelligence. (ANI)

U.S. spy satellite agency boss resigns

The head of the U.S. spy satellite agency, the National Reconnaissance Office, has announced his resignation, a spokesman said on Thursday.

Scott Large sent a memo to NRO employees on Wednesday announcing his decision, which will be effective on April 18, NRO spokesman Rick Oborn said.

His announcement came just a day after the U.S. government said it would buy expensive new spy satellites and order more imagery from two commercial providers in a plan which analysts estimate will cost around $10 billion.

Oborn said Large had given no specific reason for his departure, saying he had made a personal decision.

His resignation was first reported by the website dodbuzz.com, which reports on the Department of Defense.

The Obama administration approved the new spy satellite plan despite strong criticism from Congress.

The program will replace one that was initially awarded to Boeing Co, but was partially canceled three years ago when its costs soared billions of dollars over budget.

Sen. Christopher Bond, the top Republican on the Senate Select Committee on Intelligence, told Dennis Blair, the director of national intelligence, in a letter dated March 16, that the new plan had “zero” chance of delivering satellites on schedule and would cost too much.

A former government official, who spoke anonymously given the classified nature of the program, said the contract would likely go to Lockheed Martin Corp, particularly given concerns about Boeing’s work on the earlier program.

Large was appointed NRO director in October 2007. The director is chosen by the defense secretary with the agreement of the director of national intelligence.

U.S. plans new govt-owned satellites

Defying congressional opposition, the U.S. government on Tuesday said it would buy expensive new spy satellites and order more imagery from two commercial providers to plug gaps in satellite coverage.

The plan, which analysts and former military officials estimate will cost around $10 billion, was announced by Dennis Blair, the retired Navy admiral who serves as President Barack Obama’s Director of National Intelligence.

The program will replace one that was initially awarded to Boeing Co, but was partially canceled three years ago when its costs soared billions of dollars over budget.

Blair said satellite imagery was a core component of U.S. national security, and the new satellites were needed to ensure the safety of U.S. troops and citizens.

“Our proposal is an integrated, sustainable approach based on cost, feasibility and timeliness that meets the needs of our country now and puts in place a system to ensure that we will not have imagery gaps in the future,” he said in a statement.

Obama approved the plan, endorsed by Blair and Defense Secretary Robert Gates, on Monday, according to the statement.

Years in the making, the plan has drawn fire from lawmakers furious about billions of dollars of cost overruns in the earlier Future Imagery Architecture satellite program.

Sen. Christopher Bond, the top Republican on the Senate Select Committee on Intelligence, told Blair in a letter dated March 16 that the plan had “zero” chance of delivering satellites on schedule and would cost too much.

Blair said the government learned from earlier problems.

“We are living with the consequences of past mistakes in acquisition strategy, and we cannot afford to do so again. We’ve studied this issue, know the right course, and need to move forward now,” he said.

One senior intelligence official, who asked not to be identified, said details of the acquisition plan for the government-owned satellites were still being worked out, but a contract should be signed “within months.”

A former government official, who spoke anonymously given the classified nature of the program, said the contract would likely go to Lockheed Martin Corp, particularly given concerns about Boeing’s work on the FIA program.

Lockheed built the huge, high-resolution satellites already in orbit.

The intelligence official gave no cost details, but said the new system was not intended to move “to another plateau of performance,” and officials had not gone “off into the ether looking for magic.”

He said imaging satellites were expensive, but they also provided critical capabilities to a wide range of government agencies. He would not say how many satellites would be built, but said there would be more than one.

Given support from the Pentagon, the White House and the intelligence community, intelligence officials said they expected Congress to ultimately approve the funding required for the program, which is due to be in place before 2020.

The intelligence official said the government-owned satellites would mark a prudent evolution of current imagery satellites, funded mostly by the intelligence community.

He said there was a concerted effort to avoid mistakes made on the FIA program, and new rules required independent cost estimates and tougher assessments of technological maturity.

The plan is good news for GeoEye Inc and DigitalGlobe Inc, the two companies that provide imagery from their own satellites under contract with the National Geospatial-Intelligence Agency.

Under the plan endorsed by the White House, the government will increase its use of imagery from the two companies, which already provide imagery with a resolution of half a meter.

Longer-term contractual agreements would give the companies a more stable business model, the official said. He said the government would not directly fund new commercial satellites, but the companies could opt to launch more capable satellites in the future.

US Senate staff told not to cash in on inauguration tickets

Washington, Jan. 13 (ANI): Senate staffers have been warned not to sell their tickets for the January 20 inauguration of President Barack Obama, saying that if they do so, they would be committing federal crime.

According to the memo The JCCIC [Joint Congressional Committee on Inaugural Ceremonies] considers the sale of tickets provided to Members, or distributed to Congressional staff for personal use, to be inappropriate and to give rise to an appearance of impropriety.

Congressional personnel selling tickets will be reported to the Senate Select Committee on Ethics or the House Committee on Standards of Official Conduct for appropriate disciplinary action, the memo warns. (ANI)