FMG threatens High Court action

Normal
0

false
false
false

MicrosoftInternetExplorer4

st1:*{behavior:url(#ieooui) }

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:””;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:”Times New Roman”;
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}

Fortescue Metals Group chairman Andrew Forrest says he will announce within a month whether he will launch legal action against the Government over the mining tax.

Forrest told the Financial Review he was currently receiving legal advice on the matter.

“We have gone on behalf of the iron ore and coal sector to the best legal minds available in Australia,” he said.

“That advice is coming in, it is interesting advice … and I would expect that to be [released] well before Christmas.”

While Forrest is still fighting the tax the Minerals Council of Australia yesterday gave it a qualified tick of approval.

The MCA said there were “misconceptions” about the tax’s application to smaller miners, and claims it was unfair were not correct.

According to the Financial Review FMG today unveiled a new advertising campaign against the tax.

It said the advertising would highlight FMG was expected to pay zero to $20 million in the first three years of the tax.

FMG said these figures contradicted Government claims 90 per cent of the tax would be paid by big resources companies.

The advertising is FMG’s latest weapon in its fight against the tax, and follows its championing of a study by BDO Accounting claiming the MRRT unfairly favoured large miners.

FMG said it was now seeking a change to the mining tax so all iron ore and coal miners paid the same rate of tax.

The Government is still facing criticism for dismissing rival mining tax studies while refusing to release its own modelling.

Treasury says the information in its modelling is commercially confidential and was provided to it by miners in confidence.

The portion of Treasury’s mining tax modelling which is public is available under freedom of information.

However the company forecasts that underpin this modelling remain a secret.

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