Global mining giants BHP Billiton, Rio Tinto and Xstrata said today, on July 2, that they are encouraged by the Australian federal government's announcement that it proposes to replace the Resource Super Profits Tax with a Mineral Resource Rent Tax (MRRT).
The three mining companies agree that the government's proposal represents very significant progress towards a minerals taxation regime that satisfies the industry's core principles.
BHP Billiton, Rio Tinto and Xstrata said the agreement met the mining industry's demands that any new tax not be applied retrospectively, so existing projects where investment decisions already had been made were not adversely affected. As a result of constructive discussions, the proposed new tax will apply only to iron ore and coal resources from July 1, 2012.
The mining companies are expected to resume the investment projects that they suspended following the announcement of the Resource Super Profits Tax.