Mining companies renew rentals for workers despite threatening to take projects offshore

10-Jun-2010

Mining companies renew rentals for workers despite threatening to take projects offshore

Posted on Wednesday, June 09 2010 at 7:36 PM

Despite some of the mining giants threatening to move their projects offshore if the proposed resources tax is implemented, the continued renewal of long-term leases on rental properties for mining workers tells a different story, according to local sources.

In the heat of the proposed resources tax debate, Real Property Agents principal Tara Smyth from the central Queensland mining town of Moranbah said there's been no slowdown or hesitance from the big resources companies in renewing five-year rental property leases for workers there.

Smyth said this could indicate that projects are still expected to go ahead regardless of the tax outcome.

"We work with them (mining-related companies) every day and they're still taking on new longer-term leases," she said.

The big five companies in Moranbah renewing their workers' rental property leases include BHP, Hastings Deering, Komatsu, Thomas and Coffey, and Boom Logistics.

Over in South Australia where BHP Billiton has announced it would reconsider the Olympic Dam expansion at Roxby Downs if the tax is pushed through, Raine and Horne Roxby Downs director Craig Sumsion has interestingly seen no change in demand from the same company in re-signing three-year leases for its workers either.

"We haven't seen much of a change at all as far as leases are concerned, if anything more people are coming back into the town," he said.

Back in Moranbah, property investor sentiment also remains strong, said Smyth.

"There's a bit of mixed reaction," she said of investor enquiry during the ongoing resources tax debate, "the more experienced investors aren't too worried as they know what's involved, while the newer investors are a little unsure and holding their money for now."

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