Bloomberg reported that UBS AG downgraded BHP Billiton Limited and Rio Tinto Limited’s earnings estimates by 4% due to Australia’s mining and carbon taxes.

Mr Glyn Lawcock analyst of UBS said that BHP will pay USD 715 million in mining tax and AUD 300 million in carbon tax in the year ending June 30th 2013. The carbon tax will cost Rio USD 202 million while the mining tax will cost the company USD 676 million in the 2013 calendar year.

He said that companies including BHP, Rio and Alumina Limited may receive assistance with the carbon tax for some of their emissions. This will help Alcoa Worldwide Alumina in which Alumina has 40% interest reduce its carbon tax liability to about AUD 20 million from AUD 380 million without help.

Source - Bloomberg

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