FMG sues Government over mining tax

Fortescue Metals Group has lodged a High Court challenge against the Federal Government's mining tax on constitutional grounds.

In a statement today FMG CEO Nev Power said the minerals resource rent tax challenge would be based on four key areas:

  1. Discrimination between the states
  2. Depriving state sovereignty
  3. Giving preference to other states
  4. Restricting a state's ability to encourage mining

"We believe we have a good case for challenging the MRRT on constitutional grounds and we look forward to the resolution of these important issues by the High Court," Power said.

The challenge follows FMG's confirmation earlier this year it would fight the legislation in court.

Western Australia Premier Colin Barnett has previously thrown his support behind the move but declined to join FMG as a plaintiff in the action.

The mining tax passed the Senate earlier this year with the support of the Greens 38 votes to 32, with the Government celebrating what Treasurer Wayne Swan labeled a "huge economic reform of our time".

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.