Fortescue launches High Court battle over mining tax

Mining giant Fortescue has said in a statement to the ASX it will launch a fresh challenge in the High Court over the Federal Government’s mining tax.

”We believe we have a good case for challenging the Minerals Resources Rent Tax on constitutional grounds and we look forward to the resolution of these important issues in the High Court,” chief executive Nev Power said in a statement.

The challenge is based on grounds that the tax discriminates between states, breaching section 51 of the Constitution.

This comes after months of debate between the government and major mining companies – a debate which helped dethrone former prime minister Kevin Rudd.

A spokesperson for acting Prime Minister and Treasurer Wayne Swan said this wasn’t a shock.

”Mr Forrest has made it clear that he is staunchly opposed to the government spreading the benefits of the mining boom to millions of households and small businesses who aren’t in the fast lane,” he said, according to Fairfax.

“The Gillard government believes Australia’s non-renewable natural resources belong to all Australians, not just to a handful of mining billionaires, and is determined to deliver the MRRT to ensure the Australian community shares in the benefits and opportunities of the mining boom.”

The tax is due to begin from July 1.

This article first appeared on SmartCompany.


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