BHP says in dispute with Australia tax office

PERTH, April 4 (Reuters) - Global resources group BHP Billiton Ltd/Plc (BHP.AX)(BLT.L) said on Friday it was in dispute with the Australian Tax office over primary tax and interest of $289.6 million, relating to an iron ore processing project in Venezuela.

BHP said the Australian tax office was still considering on whether or not to apply a penalty.

"The company is confident of its position. It intends to vigorously defend the assessment," BHP said in a statement.

"This dispute is in respect of payments made pursuant to a plant completion guarantee which had been granted by BHP in 1997 to third party financiers of the Orinoco project in Venezuela," the statement said. (Reporting by Fayen Wong)