Fortescue to outline its concerns and recommendations to the MRRT Policy Transition Group
Perth, October 6, 2010:
Fortescue Metals Group will present its concerns about the proposed Mineral Resources Rent Tax (MRRT) to the Policy Transition Group (PTG) in Perth tomorrow as part of its ongoing pursuit of amendments.
Fortescue will outline a long list of unresolved issues to the PTG including:
- Taxing point and valuation method;
- Tax treatment of investment until implementation in July 2012;
- Deductibility of financing costs;
- Lack of tax deductibility of crucial mining infrastructure;
- Crediting of state and territory royalties;
- Definition and treatment of exploration expenditure;
- Treatment of environmental and rehabilitation bonds;
- Treatment of payments to acquire mining leases;
- Interpretation of the tax threshold and its interaction with royalty payments; and
- Native title payments and payments to indigenous people
Fortescue welcomes the opportunity to present to the PTG because of the high degree of uncertainty still surrounding what appears to be a fundamentally flawed tax.
However, the Company holds serious concerns about the PTG’s inability to negotiate on fundamental aspects of the proposed tax given the Government’s determinations to push ahead with the existing MRRT design.
Fortescue continues to believe the interests of three large multi-national mining companies were put ahead of the interests of the wider industry in the creation of the proposed MRRT.
Fortescue will continue to fight against the distortionary aspects of the MRRT in the interests of its shareholders.
Paul Downie: 0414 947 129
Cameron Morse: 0433 886 871