Greatland Resources CEO Shaun Day warned the federal government's capital gains tax changes are already discouraging foreign investment in mining. The company's Havieron project funding search may be affected.
Greatland Resources chief executive Shaun Day said the federal government's capital gains tax changes are already pushing investors away from growth assets, especially in the mining sector. The warning came as the company works to secure funding for its Havieron gold-copper project in Western Australia's Paterson region.
Day's comments, reported by Business News, did not specify which elements of the tax overhaul he objects to. The government's 2024-25 budget tightened the CGT regime for foreign investors in two ways. It removed the 50% discount on capital gains for assets held longer than 12 months by foreign residents. It also expanded the definition of taxable Australian real property to include mining rights and exploration tenements, a change that directly affects companies like Greatland.
Foreign capital has long been a lifeline for Australian miners. The country's junior explorers and mid-tier developers rely on offshore investors to fund drilling, feasibility studies, and mine construction. Day's argument is that the new rules make Australia a less attractive destination for that capital, at a time when the industry needs it most.
Greatland's Havieron project is a case in point. The deposit, a joint venture with Newmont, contains an estimated 3.4 million ounces of gold and 140,000 tonnes of copper. The company has been seeking a partner to help fund development and has held discussions with several groups. Day has previously argued that Australia's tax settings should reward long-term investment in hard-rock mining, not penalise it.
The CGT changes are not the only headwind. Labour shortages, rising equipment costs, and permitting delays have also slowed project timelines across the sector. But tax policy is a lever the government controls directly, and Day's frustration reflects a broader sentiment among mining executives who say the budget changes send the wrong signal.
Other industry voices have made similar points. The Association of Mining and Exploration Companies has said the CGT tightening will reduce exploration spending and make it harder for junior miners to raise equity. The Minerals Council of Australia has warned that the changes could push capital toward competing jurisdictions such as Canada and Chile.
For Greatland, the immediate question is whether the tax changes will complicate its funding search. The company has not quantified the impact on its own fundraising efforts, but Day's public warning suggests the new rules are already a factor in investor conversations.
Havieron is expected to produce first ore in 2026, according to the company's most recent project update. The feasibility study, which will set out the full development plan and capital cost, is due in the second half of this year. That study will be the next major catalyst for the stock, and it will also test whether the CGT changes have actually chilled the appetite of the foreign investors Day is counting on.
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