Mining groups voice concern over mining tax, Greens

The warnings were sounded alongside congratulations on Julia Gillard’s election victory by the Association of Mining and Exploration Companies.
Ms Gillard was returned to the office of Prime Minister on Tuesday, ending the caretaker government period since the election was held on August 21. Immediately afterwards, she was advised by the mining industry to look at the Henry tax reforms again and ensure that any benefits from a mineral resources tax are used wisely.
Other industry groups have already begun to act since the election result was confirmed.
The WA Chamber of Minerals and Energy will travel to Canberra as early as next week to discuss policy and seek urgent clarification on the resources rent tax. “Greens support for a nation-wide uranium mining ban and increasing the rate of the resource rent tax would have dire consequences for the industry,” said chief executive Reg Howard-Smith.
While the Mineral Council of Australia backed the proposed tax, the debate has been re-opened.
“As stated by the Independents the incoming government cannot claim a mandate on any policy position. We therefore welcome the proposal to establish a Tax Summit with all of the Henry Tax Review recommendations on the table for open, transparent and constructive discussion,” said AMEC chief executive, Simon Bennison.
“This provides a perfect opportunity to immediately withdraw the extra tax on mining and develop a long term strategic tax reform program,” he continued.
Mr Bennison has told the Australian Financial Review that changes to the tax are ‘inevitable’ and that treasury still has to come up with the goods on what will underpin the estimated $10.5 billion in expected revenue.
He further called for Ms Gillard and her government to implement initiatives aimed at restoring confidence in the market and declaring Australia once again open for business.
Whatever discussions take place in Canberra next week, former BHP Billiton chairman Don Argus has promised that mining tax concerns will be addressed in his forthcoming review, before any bills go before parliament.
The only certainty is that the industry has breathed a sigh of relief at the end of the caretaker government period and is anxious to re-assure a nervous global market that Australia is a stable, safe investment.