Fortescue mounts legal challenge to mineral tax
22 Jun 2012
Acting prime minister Wayne Swan is determined to deliver the government's Mineral Rent Resource Tax (MRRT) from 1 July even as the Fortescue Metals Group mounted a last-ditch challenge in the High Court.
According to the miner, which presented documents to support its claims this morning, the tax discriminated between the states and hampered a state's ability to attract mining business.
The challenge to the key federal government tax comes just a week before the 22.5-per cent tax on coal and iron ore profits comes into effect.
Around 90 per cent of the collection is expected to come from big players BHP Billiton, Rio Tinto and Xstrata.
"We believe we have a good case for challenging the (Mineral Rent Resource Tax) on constitutional grounds and we look forward to the resolution of these important issues by the High Court,'' Fortescue chief executive Nev Power said in a statementoday.
According to Fortescue chief's legal counsel Peter Huston, the case could come up for hearing within months.