The proof that something can be done to control mining companies

Australian Government imposes mining tax but court battles lay ahead
Source: The Information Daily - formerly eGov Monitor
Published Thursday, March 29, 2012 - 21:19
http://www.egovmonitor.com/node/48563

In what is seen as a major victory for prime minister Julia Gillard's minority government, Australia's parliament approved controversial legislation imposing 30% tax on iron ore and coal mine profits.

The Mineral Resources Rent Tax (MRRT) Bill 2011, will come into force on July 1 2012 and affect about 30 companies including global mining companies BHP Billiton and Rio Tinto.

The tax is expected to raise about A$10.6 billion in its first three years and aims to spread the revenue earned from the country's mining industry to other less bullish sectors of the economy, fund a cut in the company tax rate, put higher payments into pensions funds and add to the infrastructure budgdet.

Treasurer Wayne Swan called it an “historic day for economic reform, and an historic day for a fair go in Australia”.

The Association of Mining and Exploration Companies, however, has condemned the tax. Mining giant Fortescue plans to seek legal advice on a constitutional challenge to the new tax. WA Premier Colin Barnett said his Liberal-National government would join the Fortescue action if it went ahead.