Federal Treasurer Wayne Swan has admitted that the mining industry has legitimate concerns over the proposed resources tax.
This concession comes as small to mid sized mining companies ramp up a campaign against the Labor Government’s Resources Super Profit Tax (RSPT).
However, Swan told the ABC that he would not be intimidated by brinkmanship actions from the mining industry, although did acknowledge its concerns.
Swan also admitted that some companies would be paying up to 58% in tax.
Despite this, Swan stated that it would not make the mining industry in Australia unprofitable.
This follows on from earlier Government statements which labeled the mining industry’s concerns and public reaction to the tax as misleading and ill informed.
Both the Treasurer and Resource Minister Martin Ferguson are engaging in talks with the mining industry after the Federal Government was forced to re-examine the RSPT after claims from the quarrying industry that the proposed tax would hit hard those in the high commodity low value industry.
The quarrying industry also claimed that excessive taxes would flow onto the building and farming industries due to the increased costs of sand, gravel, lime, phosphates and aggregates that the quarrying industry produces.
The Association of Mining and Exploration Companies is planning to rally small mining firms together to protest the tax directly to Prime Minister Rudd and Treasurer Swan when the two arrive in Perth for talks with mining industry executives on Wednesday.