PRESS DIGEST-Australian General News - Dec 11

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Mining giant Rio Tinto (RIO.AX) will cut 14,000 jobs and may sell off key assets in order to slash US$10 billion from its debt of US$38.9 billion by the end of next year. Analysts speculated that Rio may offload a stake in its Hammersley iron ore project, as well as its holdings in coalminer Coal & Allied and uranium miner ERA. Rio chief executive Anthony Albanese maintained yesterday the company did not need to raise equity but conceded that "the world has changed, not just within the mining industry but within the whole economic climate.' Page 1.

-- Federal Treasury secretary Ken Henry has signalled there will be no further cuts to the 30 percent company tax rate, as it is already below the developed-country weighted average. Mr Henry made the admission at yesterday's release of two papers aimed at outlining the broad agenda of the tax review launched by Federal Treasurer Wayne Swan earlier in the year. Mr Henry also conceded that the omission of the general services and goods tax (GST) from the review was "a constraint on our thinking.' Page 1.

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State-owned energy companies have warned the Rudd Government they may not be able to fund the massive capital investment programs needed to meet the Government's carbon emissions targets unless they can raise prices. Queensland Treasurer Andrew Fraser said yesterday that the global financial crisis had limited the ability of state government-owned energy companies to raise equity. However, the Energy Users Association of Australia said that state-owned energy firms "have had it far too good for far too long.' Page 1.

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Collapsed childcare operator ABC Learning Centres (ABS.AX) may receive a further A$35 million from its lenders in order to keep its 720 profitable centres open long enough to be sold. The Big Four banks, which have a combined exposure of over A$1 billion to ABC Learning, last month injected around A$30 million into the company. Receivers McGrathNicol said yesterday that 55 unprofitable ABC Learning centres would be closed on December 31. Page 3.

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THE AUSTRALIAN (www.theaustralian.news.com.au)

Lawyers for Andrew Forrest's iron ore company, Fortescue Metals Group (FMG.AX) (FMG), and six other companies yesterday pleaded not guilty to over 40 charges brought by Worksafe. The charges concern the death of two workers, Debbie Alexandra Till and Craig Allan Raabe, when Cyclone George destroyed one-third of FMG's rail camp in the West Australian Pilbara region. The charges, made under the West Australian Occupational Health and Safety Act, include a failure to design and construct buildings capable of withstanding a cyclone. Page 2.

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Indonesia has agreed to the extradition of an accused people-smuggling kingpin who is alleged to be responsible for hundreds of asylum seekers reaching Australia. The move to extradite Hadi Ahmadi, a citizen of both Iran and Iraq, follows talks between Prime Minister Kevin Rudd and Indonesian President Susilo Bambang Yudhoyono yesterday. The Australian Federal Police has been calling for the extradition of Mr Ahmadi since his arrest at Jakarta airport six months ago. Page 2.

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High Court judge Michael Kirby will receive a solo farewell when he retires next year, a tradition that normally only applies to chief justices. The break with convention was authorised by Chief Justice Robert French. Attorney-General Robert McClelland said Justice Kirby had "made an outstanding contribution during his 25 years of judicial service.' Justice Kirby has indicated he will retire once the Federal Government has secured passage of its same-sex legislation. Page 2.

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